Sierra Vista Energy Ltd.

Sierra Vista Energy Ltd.

November 27, 2006 12:24 ET

Sierra Vista Announces Closing of $5 Million Equity Financing

CALGARY, ALBERTA--(CCNMatthews - Nov. 27, 2006) -


Sierra Vista Energy Ltd., (TSX VENTURE:SVR.A)(TSX VENTURE:SVR.B) ("Sierra Vista" or the "Corporation"), is pleased to announce today that it closed its previously announced short form prospectus equity financing (the "Offering") with a syndicate of agents led by RBC Dominion Securities Inc. and including Dundee Securities Corporation (the "Agents"), for total gross proceeds of $5,003,750. Pursuant to the financing, Sierra Vista issued 4,475,000 Units at a price of $0.80 per Unit and 1,675,000 Class A common shares, on a Canadian development expenditure flow-through basis (the "Flow-Through Shares") at $0.85 per share. Each Unit consists of one class A share ("Common Share") and one Common Share purchase warrant ("Warrant") which entitles the holder to acquire one Common Share at an exercise price of $1.25 per share at any time until 4:00 p.m. (MDT) on December 15, 2007. Sierra Vista directors and management subscribed for 818,750 Units of the Offering.

The Flow-Through Share proceeds will be used to incur qualified Canadian Development Expenses which will be renounced to subscribers for the 2006 taxation year.

The Corporation has made application to the TSX Venture Exchange ("the "Exchange") to list the Warrants for trading on the Exchange. The Corporation expects the Warrants to begin trading on or about November 28, 2006 under the symbol SVR.W. The Corporation will make an announcement upon receipt of the Exchange's acceptance of trading of the Warrants on the Exchange.

The Agents received compensation of $260,925 equal to 6% of the gross proceeds of the Offering (less proceeds from subscriptions by directors and management) and 307,500 warrants ("Agents Warrants") representing 5% of the aggregate number of Units and Flow-Through Shares sold under the Offering. Each Agents Warrant entitles the holder thereof to acquire one Common Share at an exercise price of $0.80 per share at any time until 4:00 pm on December 15, 2007.

Sierra Vista is a junior oil and gas company engaged in the exploration for, and development and production of, crude oil and natural gas focusing in the Peace River Arch and South Central regions of Alberta. The Corporation's shares trade on the TSX Venture Exchange under the symbols "SVR.A" and "SVR.B".

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

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this statement.

Contact Information

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