Solimar Energy Limited

Solimar Energy Limited

June 27, 2012 07:30 ET

Solimar Closes $4 Million Capital Raising

MELBOURNE, AUSTRALIA--(Marketwire - June 27, 2012) -


Solimar Energy Limited (ASX:SGY)(TSX VENTURE:SXS) (the "Corporation") is pleased to announce that it has closed its previously announced private placement of subscription receipts exchangeable into convertible debentures (convertible into common shares at Cdn10 cents per share) and associated warrants (exercisable for common shares at Cdn12 cents per share) with all funds received in escrow.

Release of the funds to the Corporation is pending the approval of shareholders which will be sought at a general meeting to be held in Melbourne, Australia on 23 July, 2012.

The required consent of 2/3 of the Corporation's existing convertible debenture holders to the private placement has been obtained.

The private placement consisted of 80 subscription receipts at Cdn$50,000 per subscription receipt to raise Cdn$4.0 million before costs. The funds will mainly be used to exploit the Corporation's California oil and gas discoveries in particular the 100% owned Kreyenhagen oil field redevelopment project.


John Begg, Chief Executive Officer

Solimar Energy Limited

This press release contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur, including without limitation statements relating to intended testing, work programs, financing and associated timelines. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Solimar Energy Limited cannot assure that actual results will be consistent with these forward-looking statements. They are made as of the date hereof and are subject to change and Solimar Energy Limited assumes no obligation to revise or update them to reflect new circumstances, except as required by law. Prospective investors should not place undue reliance on forward-looking statements. These factors include the inherent risks involved in the exploration for and development of crude oil and natural gas properties, the uncertainties involved in interpreting drilling results and other geological and geophysical data, fluctuating energy prices, the possibility of cost overruns or unanticipated costs or delays and other uncertainties associated with the oil and gas industry. There is no assurance that the Offering will be completed.

ABN 42 112 256 649

Neither 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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