Veraz Petroleum Ltd.

Veraz Petroleum Ltd.

July 06, 2010 18:01 ET

Veraz Petroleum Ltd. Announces Withdrawal of Prospectus Offering

CALGARY, ALBERTA--(Marketwire - July 6, 2010) - Veraz Petroleum Ltd. ("Veraz") (TSX VENTURE:VRZ) has decided to withdraw its prospectus offering. Although there was significant institutional interest during the marketing period, market uncertainty created by the sovereign debt crisis in Europe and the resulting drop in oil prices have created a challenging environment within which to raise the $50 million originally contemplated. Management feels that raising this amount is critical to allow participation at Veraz's current working interest level and has decided to delay the offering until market conditions improve.

Veraz and its joint venture partner, Petrominerales Ltd. of Colombia, continue working on Block 126. Drilling locations for the 2011 drilling season have been finalized and submitted to Perupetro for review and approval. The seismic programs, completed in December 2009, have added significantly to the understanding of the area and management is very encouraged by the opportunities identified to date.

Veraz Petroleum Ltd. is a junior South American focused oil and gas exploration company based in Calgary, Alberta.

Forward-Looking Statements Certain information provided in this press release constitute forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast", "plan" and similar expressions are intended to identify such forward-looking statements. Specifically, this press release contains forward-looking statements relating to Veraz's intention to complete a financing in the future and the potential size of that financing. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in our Canadian securities filings. Such factors include, but are not limited to: the ability of Veraz to obtain financing on attractive terms or at all; general economic, market and business conditions; fluctuations in oil prices; the results of exploration activities; timing and rig availability, fluctuation in foreign currency exchange rates; changes in environmental and other regulations; risks associated with oil and gas operations; and other factors, many of which are beyond the control of Veraz. There is no representation by Veraz that actual results achieved during the forecast period will be the same in whole or in part as those forecast. Except as may be required by applicable securities laws, Veraz assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.

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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