Solimar Energy Limited

Solimar Energy Limited

August 01, 2012 09:00 ET

Solimar Energy Limited: C$4 Million Funds Released From Escrow

MELBOURNE, AUSTRALIA--(Marketwire - Aug. 1, 2012) -


Solimar Energy Limited (ASX:SGY)(TSX VENTURE:SXS) ("Solimar" or the "Corporation") is pleased to announce that, having received the required shareholder approval at the General Meeting on Monday July 23 and the required approval from the holders of debentures issued in February 2012, it has issued 80 debentures ("Debentures) and 20,000,000 warrants ("Warrants") in exchange for subscription receipts issued by it on June 27, 2012, allowing the gross proceeds of $C4.0 million to be released from escrow.

The Debentures are convertible into common shares at C$0.10 (10 Canadian cents) per share and each Warrant is exercisable for one common share at C$0.12 (12 Canadian cents) per share.

Under the subscription receipt financing announced on June 11, 2012, the C$4.0 million raised had been placed in escrow, with release of the funds subject to certain conditions. All conditions to the release of the funds raised by the issue of the subscription receipts have been fulfilled and the funds have been released.

The Company intends to use the net proceeds of the offering principally to exploit its California oil and gas discoveries in particular the 100% owned Kreyenhagen oil field redevelopment project.

Mr Ryan Dunfield, a representative of Second City Capital Partners, has joined the Board of the Corporation. Mr. Dunfield is Vice President with the Vancouver B.C. private equity group Second City Capital Partners, and its affiliate, Gibralt Capital Corporation. Mr. Dunfield is heavily involved with the acquisition and divestiture of portfolio companies within the resource sector. Previous to Second City Capital Partners, Mr. Dunfield worked in the debt capital markets, with exposure to corporate banking, leveraged finance and loan syndications. Mr. Dunfield received a Bachelor of Economics and Finance from the University of Calgary.


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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