Serrano Energy Ltd.

November 14, 2007 17:53 ET

Serrano Energy Ltd. Announces Closing of $7 Million Private Placement Financing

CALGARY, ALBERTA--(Marketwire - Nov. 14, 2007) -

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Serrano Energy Ltd. ("Serrano" or the "Corporation") is pleased to announce that it has raised approximately $7 million pursuant to a non-brokered offering of units and flow-through shares (the "Private Placements") which closed on October 1, 2007 and October 15, 2007.

The Corporation completed the sale of 700,000 units ("Units") at a price of $5.00 per Unit for gross proceeds of $3,500,000 on October 1, 2007. Each Unit was comprised of one common share ("Common Share") and one-half purchase warrant ("Warrant"). Each whole Warrant is exercisable for one additional Common Share until October 31, 2008 at an exercise price of $6.50 per share. The Corporation also completed the sale of 586,666 Common Shares issued on a flow-through basis ("Flow-Through Shares") at a price of $6.00 per Flow-Through Share for gross proceeds of $3,519,996 on October 15, 2007. All securities will have a four month hold period.

The Corporation intends to use the proceeds from the Private Placements to fund the exploration and development of Serrano's properties located in Alberta and Saskatchewan.

Since October 1, 2007, Serrano has drilled 26 gross wells (approximately 40% working interest) of which 20 have been completed to date. Serrano anticipates drilling another 20 wells before the end of the year. Serrano currently has approximately 800 boepd of production. This includes approximately 300 boepd acquired effective June 1, 2007 as a result of the purchase of certain producing properties from Arapahoe Energy Corporation which is anticipated to close November 30, 2007. Serrano expects to exit 2007 with 1,000 boe of net daily production.

Serrano Energy Ltd. is an Alberta-based company formed to participate in heavy oil and natural gas exploration, development and acquisitions in Alberta and Saskatchewan. The Corporation's shares are not currently listed for trading on any stock exchange. The Corporation currently has 10,941,297 Common Shares outstanding.

FORWARD-LOOKING STATEMENTS Certain information set forth in this document, including management's assessment of Serrano's future plans and operations, contain forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond these parties' control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Serrano's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Serrano will derive therefrom. Serrano disclaims any intention or obligation to update or review any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • Serrano Energy Ltd.
    J.W. Grant Robertson
    Vice-President Business Development
    (403) 231-1230