Sahara Energy Ltd.

Sahara Energy Ltd.

February 24, 2010 10:58 ET

Sahara Energy Ltd.: Revocation of Cease Trade Orders

CALGARY, ALBERTA--(Marketwire - Feb. 24, 2010) - Sahara Energy Ltd. (TSX VENTURE:SAH) (PINK SHEETS:SAHRF)(the "Company" or "Sahara") is pleased to announce that the British Columbia Securities Commission on February 18, 2010, and the Alberta and Ontario Securities Commissions on February 19, 2010 issued orders revoking their previous cease trade orders that trading cease in respect of the securities of the Company. The previous cease trade orders were issued by Alberta Securities Commission on May 7, 2009 and by the British Columbia and Ontario Securities Commissions on May 11, 2009 for failure to file continuous disclosure materials, including the audited annual financial statements, annual MD&A and certification of annual filings for the year ended December 31, 2008. The Company was unable to file its continuous disclosure materials as a result of financial constraints due to its oil marketer being placed in receivership and the marketer's failure to provide funds to the Company.

At the Annual and Special Meeting of the Shareholders of the Company held on December 22, 2009, in addition to the election of directors, appointment of auditors and approval of the Company's stock option plan, the shareholders passed a special resolution authorizing the outstanding shares of the Company to be consolidated on the basis of one new common share for up to a maximum of every four old common shares then issued or outstanding, a special resolution authorizing the change of name of the Company, and a resolution to authorize the sale of oil and gas properties for a purchase price of $2,000,000. The Company will not be proceeding with the proposed sale of the oil and gas properties. Also, at this time, the Company will not be proceeding with the issuance of shares for debt as noted in its annual and interim financial statements and MD&A.

Sahara is currently producing 60 BOPD of heavy oil in the Lloydminster area of Alberta from its six 100% owned and operated wells. Sahara also has 10 BOEPD of non-operated production. Sahara has been evaluating for acquisition, additional heavy oil prospects in the Lloydminster area of Alberta. The Corporation is also reviewing various financing alternatives to move forward in its activities.

The Company has been advised that its shares are scheduled to be reinstated on the TSX Venture Exchange effective the opening Thursday, February 25, 2010.


Certain statements regarding Sahara Energy Ltd., including management's assessments of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond the Corporation's control. These risks may cause actual financial and operating results, performance, levels of activity and achievements to differ materially from those expressed in, or implied by, such forward-looking statements.

Such factors include, but are not limited to: the impact of general economic conditions in Canada and the United States; industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced; competition; the lack of availability of qualified personnel; fluctuations in commodity prices; the results of exploration and development drilling and related activities; imprecision in reserve estimates; the production and growth potential of the Corporation's various assets; fluctuations I foreign exchange or interest rates; the ability to access sufficient capital from internal and external sources; and obtaining required approvals of regulatory authorities. Accordingly, the Corporation gives no assurance nor makes any representations or warranty that the expectations conveyed by the forward-looking statements will prove to be correct and actual results may differ materially from those anticipated in the forward-looking statements. The Corporation undertakes no obligation to publicly update or revise any forward-looking statements.

The term "BOE" may be misleading, particularly if used in isolation. In accordance with NI 51-101, BOE conversion ratio for natural gas of 6msef: 1bbl has been used which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

38,036,302 shares outstanding

"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

Contact Information

  • Sahara Energy Ltd.
    Peter J. Boswell
    (403) 232-1359
    (403) 232-1307 (FAX)