Solana Petroleum Corp -
Solana completes private placement agreement
Solana Petroleum Corp
SOP
Shares issued 14,746,964
1999-02-03 close $0.65
Wednesday Feb 3 1999
Mr. James Taylor reports
Solana Petroleum Corp. has signed an agreement with StephenAvenue Securities
Inc. for a best efforts private placement of up to 2,000,000 units at 50 cents for
gross proceeds of $1,000,000.
Each unit consists of one share and a half warrant. One whole warrant entitles the
holder to purchase a share at 75 cents on or before May 31, 1999.
StephenAvenue Securities will receive a commission of 7 per cent of the gross
proceeds and an option to acquire the number of units equal to 5 per cent of the
units sold pursuant to the private placement.
The private placement will provide additional operating funds for the company to
proceed with its partners in further exploration in the Llanos basin of northeastern
Colombia where they hold association contracts with Ecopetrol, Colombia's
state-owned oil company.
Testing is under way on the company's initial exploration well, the Mateguafa No.
1, drilled last year in the Tapir block of the Llanos basin which, based on log
analysis, encountered at least four zones potentially capable of oil production.
Mobilization of the rig for testing was delayed due to an unusually long rainy
season. Preliminary test results are expected in approximately 30 days.
Plans are being finalized to drill a second exploration well in another area of the
Tapir block. The well site is currently being prepared and drilling is expected to
commence later this month.
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