Petrolifera Petroleum Limited

Petrolifera Petroleum Limited

March 25, 2010 15:40 ET

Petrolifera Petroleum Announces Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - March 25, 2010) -


Petrolifera Petroleum Limited (TSX:PDP) announces today that it has entered into an agreement with a syndicate of underwriters led by RBC Capital Markets and including Cormark Securities Inc. and Thomas Weisel Partners Canada Inc. under which Petrolifera will issue 20,590,000 common shares ("Common Shares") on a "bought deal" basis for gross proceeds of $17.5 million ($0.85 per Common Share). Petrolifera has granted the underwriters an over-allotment option to purchase up to an additional 3,088,500 Common Shares on the same terms and conditions, exercisable in whole or in part up to 30 days following closing of the offering. The offering is scheduled to close on or about April 13, 2010.

The net proceeds of the offering will be used by Petrolifera to fund a portion of its capital spending program in Argentina, Colombia and Peru, to repay indebtedness pursuant to its reserve-backed credit facility and for working capital.

A preliminary short-form prospectus will be filed with securities regulatory authorities in all provinces of Canada except Quebec. The securities to be offered have not been and will not be registered under the U.S. Securities Act of 1933 (the "1933 Act") or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States or any other jurisdiction outside of Canada, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Petrolifera Petroleum Limited is a Calgary-based crude oil, natural gas and natural gas liquids exploration, development and production company with interests in eleven concessions or licenses in Argentina, Colombia and Peru.

Forward-Looking Information:

This press release contains certain "forward-looking information" within the meaning of applicable securities law including statements regarding the proposed use of proceeds of the offering. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. This information is only a prediction. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These factors include the inherent risks involved in the exploration and development of oil and natural gas properties and the possibility of unanticipated costs and expenses. Completion of the proposed offering is subject to certain risks and uncertainties including receipt of all required regulatory approvals, including from the Toronto Stock Exchange and the satisfaction of all conditions to closing. For a description of the risks and uncertainties facing Petrolifera and its business and affairs, readers should refer to Petrolifera's Annual Information Form for the year ended December 31, 2009. Petrolifera undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking information.

Contact Information

  • Petrolifera Petroleum Limited
    R. A. Gusella
    Executive Chairman
    (403) 538-6201
    Petrolifera Petroleum Limited
    Gary D. Wine
    President and Chief Operating Officer
    (403) 539-8450
    Petrolifera Petroleum Limited
    Kristen J. Bibby
    Vice President Finance and Chief Financial Officer
    (403) 539-8450