/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
CALGARY, April 28 /CNW/ - Canacol Energy Ltd. ("Canacol" or the
"Corporation") (TSX VENTURE: CNE) is pleased to announce that it has entered
into an agreement with Canaccord Capital Corporation ("Canaccord") to issue,
on a private placement "best efforts" agency basis, up to $5,000,000 in units
("Units") at a price of $0.125 per Unit (the "Offering"). Each Unit will
consist of one common share of the Corporation and one-half common share
purchase warrant ("Warrant"), with each whole Warrant entitling the holder to
acquire one common share of the Corporation at a price of $0.20 for a period
of 24 months from the closing date of the Offering. The Offering is expected
to close on or about May 26, 2009.
Charle Gamba, President and CEO of Canacol, stated, "We are very pleased
to be raising additional capital to fund our previously announced 2009 work
program, which includes our operated development drilling program in Colombia.
This includes the drilling of three development wells and the workover of
three existing producers on our operated Rancho Hermoso and Entrerrios fields,
and the drilling of additional delineation wells on our heavy oil discovery at
Capella. As previously announced, part of the capital for these programs will
be advanced by Gemini Oil and Gas. A portion of the proceeds from this
offering will also be directed towards preparing for our 2010 exploration
drilling and seismic programs in Guyana and Brazil."
Completion of the private placement is subject to certain conditions
including, but not limited to, the receipt of all necessary regulatory
approvals including the approval of the TSX Venture Exchange.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be any sale of
securities in any state in the United States in which such offer, solicitation
or sale would be unlawful. The securities referred to herein have not been and
will not be registered under the United States Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent
registration or an applicable exemption from registration requirements.
Canacol is a Canadian based international oil and gas corporation with
operations in Colombia, Brazil and Guyana. Canacol is publicly traded on TSX
Venture Exchange (TSX VENTURE: CNE). The Corporation's public filings may be
found at www.sedar.com.
This press release may contain statements within the meaning of safe
harbour provisions as defined under Securities Laws and Regulations. The above
statements are based on the current expectations and beliefs of Canacol's
management and are subject to a number of risks and uncertainties that may
cause the actual results to differ materially from those described above.
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.
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. The Corporation 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 the Corporation 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. Other risk factors could include risks
associated with negotiating with foreign governments as well as country risk
associated with conducting international activities, and other factors, many
of which are beyond the control of the Corporation.
A barrel of oil equivalent (boe) is derived by converting gas to oil in
the ratio of six thousand cubic feet of gas to oil and may be misleading,
particularly if used in isolation. A boe conversion is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead, especially in various
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.
For further information:
For further information: Canacol Energy Ltd., Mr. Brian Hearst, CFO,
(403) 237-9925, Email: firstname.lastname@example.org