FINANCING / Solana Petroleum Completes Private Placement Agreement
CALGARY, Feb. 3 /CNW/ - Solana Petroleum Corp. announces it has signed an
agreement with StephenAvenue Securities Inc. for a ''best efforts'' private
placement of up to 2,000,000 units at a price of $0.50 per unit for gross
proceeds of $1,000,000.
Each unit consists of one common share and one-half common share purchase
warrant. One whole warrant entitles the holder to purchase a common share at
an exercise price of $0.75 on or before May 31, 1999. StephenAvenue
Securities will receive a commission of 7 percent of the gross proceeds and an
option to acquire the number of units equal to 5 percent of the units sold
pursuant to the private placement.
James B. Taylor, Solana chairman, said 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 underway 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. The Company said preliminary test results
are expected in approximately 30 days.
Mr. Taylor stated that 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.
Solana Petroleum is a Calgary-based international oil and gas exploration
company currently focusing on its interests in Colombia. The Company's common
shares are listed on the Alberta Stock Exchange and trade under the symbol
SOP.
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