Sahara Energy Ltd.
TSX VENTURE : SAH
PINK SHEETS : SAHRF

Sahara Energy Ltd.

November 14, 2007 18:43 ET

Sahara Energy- Announces Operational Update and Update on Private Placement

CALGARY, ALBERTA--(Marketwire - Nov. 14, 2007) - Sahara Energy Ltd. ("Sahara" or the "Company") (TSX VENTURE:SAH) (PINK SHEETS:SAHRF) Sahara has entered into a three well farmout agreement with an industry partner. Under the agreement two wells will be drilled at Hayter, Alberta, with the farmee paying 100% of all costs to earn 60%, with no payout (Sahara owns 50% of the Hayter lands and will retain a carried 20% interest). These two wells will be spud at Hayter prior to November 30, 2007 with two additional option wells that can be drilled based on the success of the commitment wells on the same terms. Sahara has also farmed out a well at Llyodminster, with an industry partner paying 100% to earn 65%, with no payout. (Sahara owns 75% on these lands and is carried for 26.25%). Additional option wells can be drilled at Lloydminster based on success, for the same terms.

Sahara is currently evaluating farming out several additional prospects to industry partners and may drill one well and re-complete 2 wells at Lloydminster subject to financing.

Sahara has decided to not to proceed with a non-brokered private placement originally announced on October 29, 2007, of up to 8,000,000 common shares issued on a "flow-through" basis at a price of $0.22 per flow-through share and instead intends to proceed with a non-brokered private placement of up to 3,636,364 common shares in a at a price of $0.11 per common share for aggregate proceeds of up to $400,000. Proceeds of the private placement will be used to pay down Sahara's debt.

Sahara expects that Insiders of the Company may subscribe for up to $390,000 of the proceeds under the private placement. The private placement is exempt from the valuation and minority shareholder approval requirements of OSC Rule 61-501 (the "Rule") by virtue of exemptions contain in sections 5.5(2), 5.7(2) and 5.7(3) of the Rule.

The private placement is subject to acceptance for filing by the TSX Venture Exchange.

The board of directors of Sahara has been and is considering strategic issues for the corporation. The board of directors will be considering alternatives to maximize shareholder value for raising additional capital, which may be in the form of debt or equity, as the corporation will require additional funds in order to carry out its business plan.

READER ADVISORY

Statements in this press release may contain forward-looking statements including expectations with respect to future events and the actions of third parties. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: the underlying risks of the oil and gas industry (i.e. operational risks in development, exploration and production; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserves estimates; the uncertainty of estimates and projections relating to production, costs and expenses, adequate available financing and health, safety and environmental factors), commodity price and exchange rate fluctuation and uncertainties.

Note: Boe means barrel of oil equivalent on the basis of 1 boe to 6,000 cubic feet of natural gas. Boe's may be misleading, particularly if used in isolation. A boe conversion ratio of 1 boe for 6,000 cubic feet of natural gas is based on an energy equivalency conversion primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Sahara Energy Ltd.
    Peter J. Boswell
    President
    (403) 232-1359
    Email: pete@saharaenergy.ca
    or
    Sahara Energy Ltd.
    Quentin Enns
    Vice-President, Exploration
    (403) 232-1359
    Email: quentin@saharaenergy.ca
    or
    Sahara Energy Ltd.
    800, 510 - 5th Street S.W.
    Calgary, Alberta T2P 3S2