Sierra Vista Energy Ltd.
TSX VENTURE : SVR.A
TSX VENTURE : SVR.B

Sierra Vista Energy Ltd.

February 01, 2007 15:42 ET

Sierra Vista Announces Increase in Previously Announced Financing

CALGARY, ALBERTA--(CCNMatthews - Feb. 1, 2007) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Sierra Vista Energy Ltd., (TSX VENTURE:SVR.A) (TSX VENTURE:SVR.B) ("Sierra Vista" or the "Corporation"), is pleased to announce that it has agreed to increase the size of its previously announced financing by 1,111,000 Flow-Through Shares and, accordingly, it will now issue up to 5,556,000 Flow-Through Shares at a price of $0.90 per Flow-Through Share, assuming the full exercise of the underwriters' option, for gross proceeds of up to $5,000,400.

As previously announced, the offering is being made through an underwriting syndicate led by Dundee Securities Corporation and including Acumen Capital Partners, Haywood Securities Inc. and Wellington West Capital Markets Inc.

Subject to regulatory approval, closing is anticipated to be on February 22, 2007.

The Corporation will apply the proceeds to qualified Canadian Exploration Expenditures.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy securities in any jurisdiction. The Flow-Through Shares have not been nor will they be registered under the United States Securities Act of 1933, and they may not be offered or sold in the United States absent from registration or an exemption from registration.

Forward-Looking Statements

Certain of the statements contained herein including, without limitation, financial and business prospects and financial outlooks may be forward-looking statements which reflect management's expectations regarding future plans and intentions, growth, performance and business prospects and opportunities.

In particular, this press release contains forward-looking statements pertaining to the Corporation's expectations of raising additional capital and completing the Offering.

The Corporation's actual results could differ materially from those anticipated in these forward-looking statements. The Corporation is subject to the risk factors associated with the oil and gas industry and there can be no assurance that the Corporation will complete the Offering.

Words such as "may", "will", "should", "could", "anticipate", "believe", "expect", "intend", "plan", "potential", continue" and similar expressions have been used to identify these forward-looking statements. These statements reflect management's current beliefs and are based on uncertainties. Although the forward-looking statements contained within this press release are based upon what management believes to be reasonable assumptions, management cannot assure that actual results will be consistent with these forward-looking statements. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances unless required under securities laws.

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

Contact Information

  • Sierra Vista Energy Ltd.
    Mr. Mark Malouin
    President & CEO
    (403) 265-9393 ext 201
    (403) 265-9224 (FAX)
    or
    Sierra Vista Energy Ltd.
    Mr. Bruce Stewart
    Chief Financial Officer
    (403) 265-9393 ext 205
    (403) 265-9224 (FAX)
    or
    Sierra Vista Energy Ltd.
    Suite 850, 101-6th Avenue SW
    Calgary, Alberta T2P 3P4