Petrolia Inc.

TSX VENTURE : PEA


Petrolia Inc.

April 03, 2014 08:04 ET

Petrolia Announces $3.0 Million Bought Deal Private Placement

QUÉBEC CITY, QUÉBEC--(Marketwired - April 3, 2014) -

NOT FOR DISTRIBUTION TO PRESS SERVICES IN THE UNITED STATES AND NOT FOR CIRCULATION IN THE UNITED STATES

Pétrolia (TSX VENTURE:PEA) (the "Company") is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Laurentian Bank Securities Inc. and including National Bank Financial Inc. (the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on a bought deal private placement basis, 4,000,000 common shares of the Company at a price of $0.75 per common share (the "Issue Price") for total gross proceeds to the Company of $3,000,000 (the "Offering"). The common shares issued pursuant to the Offering will qualify for inclusion in a Quebec Stock Savings Plan II (the "QSSP II") for qualified investment funds.

The Company has also granted the Underwriters an option to acquire up to 600,000 common shares, exercisable in full or in part at any time up to 48 hours prior to the closing date, at the Issue Price (the "Underwriters' Option"). In connection with the Offering, the Company has agreed to pay the Underwriters a cash commission equal to 7.0% of the gross proceeds from the Offering.

The common shares will be offered on a private placement basis to qualified investors in Quebec, Ontario, Manitoba, Alberta and British Columbia and in other jurisdictions in accordance with applicable registration exemptions. The Offering is expected to close on or about April 23, 2014 (the "Closing Date") and is subject to the satisfaction of certain conditions, including without limitation, obtaining all applicable regulatory approvals and the satisfactory completion of the Underwriters' due diligence review.

The net proceeds of the Offering will be used to support working capital and other general corporate purposes.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The Common Shares have not been and will not be registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement.

About Pétrolia

Pétrolia is a junior oil and gas exploration company which owns interests in oil and gas licenses covering 16,000 km² (4 million acres), which represents about 22% of the Québec territory under lease. Pétrolia is a Quebec company that ensures its developments are done with respect for the communities in which it operates and in accordance with Quebec values, notably in regards to the protection of the environment. Pétrolia has 70 667 372 shares issued and outstanding.

Forward-looking statements

Certain statements made herein may constitute forward-looking statements. These statements relate to future events or the future economic performance of Pétrolia and carry known and unknown risks, uncertainties and other factors that may appreciably affect their results, economic performance or accomplishments when considered in light of the content or implications or statements made by Pétrolia. Actual events or results could be significantly different. Accordingly, investors should not place undue reliance on forward-looking statements. Pétrolia does not intend and undertakes no obligation to update these forward-looking statements.

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.

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