Sahara Energy Ltd.

Sahara Energy Ltd.

November 02, 2006 16:04 ET

Sahara Energy Announces New Director and Closing of Private Placement

CALGARY, ALBERTA--(CCNMatthews - Nov. 2, 2006) - Sahara Energy Ltd. (TSX VENTURE:SAH) ("Sahara" or the "Company") is pleased to announce today the closing of its previously announced private placement to The Norrep Group of Funds through Hesperian Capital Management (the "Private Placement") of 1,000,000 flow-through shares issued and renounced as "Canadian Development Expense" ("CDE Flow-Through Shares") at an issue price of $1.20 per CDE Flow-Through Share and 1,000,000 flow-through shares issued and renounced as "Canadian Exploration Expense" ("CEE Flow-Through Shares") at an issue price of $1.33 per CEE Flow-Through Share (the "Offering") for a total of $2.53 million.

Sahara is also pleased to announce the appointment of Quentin C. Enns, P.Geol, Vice President - Exploration - Sahara Energy, as a Director of the Company. Mr. Enns has over 20 years of petroleum industry experience, with the last six years being spent at Canadian Natural Resources Limited. Mr. Enns was the founder and president of Find Oil & Gas Ltd., a private company engaged in geologic consulting and prospect generation in the Western Canadian Sedimentary Basin. Mr. Enns is a graduate of the University of Regina, B,Sc. (Geology) - 1985. He is an active member of APEGGA, CSPG and AAPG.

Sahara is a junior oil and gas company focused on the acquisition, exploration and development of oil and natural gas in western Canada.


FORWARD-LOOKING STATEMENTS Certain information set forth in this document, including management's assessment of Sahara'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. Sahara'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 Sahara will derive therefrom. Sahara disclaims any intention or obligation to update or review any forward-looking statements, whether as a result of new information, future events or otherwise.

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 Boswell
    President and Chief Executive Officer
    (403) 232-1359
    Sahara Energy Ltd.
    800 - 510 5th Street SW
    Calgary, Alberta T2P 3S2
    (403) 232-1359
    (403) 232-1307 (FAX)