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

Sierra Vista Energy Ltd.

December 14, 2006 17:06 ET

Sierra Vista Announces Closing of Over-Allotment

CALGARY, ALBERTA--(CCNMatthews - Dec. 14, 2006) -

NOT FOR DISTRIBUTION IN THE 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 today that it closed a portion of the over-allotment option ("Over-Allotment") on its previously announced short form prospectus equity financing with a syndicate of agents led by RBC Dominion Securities Inc. and including Dundee Securities Corporation (the "Agents"), for total gross proceeds of $360,000. Pursuant to the Over-Allotment, Sierra Vista issued 450,000 Units at a price of $0.80 per Unit with each Unit consisting 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.

The Agents received compensation of $21,600 equal to 6% of the gross proceeds of the Over-Allotment and 22,500 warrants ("Agents Warrants") representing 5% of the aggregate number of Units sold under the Over-Allotment. 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)
    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
    Website: www.sierravista.ca