Veraz Petroleum files preliminary prospectus for equity offering



    /THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
    SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. This news release
    does not constitute an offer of securities for sale in the United States.
    These securities may not be offered or sold in the United States absent
    registration or an available exemption from registration under the United
    States Securities Act of 1933, as amended./

    CALGARY, June 16 /CNW/ - Veraz Petroleum Ltd. ("Veraz" or the
"Corporation") (CNQ:VRAZ), announces that it has filed a preliminary
prospectus dated June 16, 2008 with the securities regulatory authorities in
the provinces of Canada, other than Quebec, in respect of a proposed new issue
(the "Offering") of common shares on an agency basis through a group of agents
led by Peters & Co. Limited and including Tristone Capital Inc. and Haywood
Securities Inc. The Offering size is expected to be up to $25 million. The
number of common shares to be issued and the offering price of the common
shares will be determined in the context of the market for the Offering at the
time of filing a final prospectus in respect of the Offering. A preliminary
offering price target range of $0.50 to $0.75 per share has been indicated in
the preliminary prospectus.
    The net proceeds of the Offering will be used to fund the Corporation's
exploration program on Block 126 in Peru and for general working capital, all
as more particularly described in the preliminary prospectus.
    The Corporation expects to enter into a written agency agreement with the
agents prior to filing its final prospectus in respect of the Offering, which
agreement will set forth the terms of the Offering and details of the rights
and obligations of the Corporation and the agents with respect to the
Offering, including the payment by the Corporation to the agents of a fee in
connection with the Offering.
    As stated in the preliminary prospectus, the Corporation has applied to
list its common shares on the TSX Venture Exchange. Listing will be subject to
the Corporation fulfilling all listing requirements of the TSX Venture
Exchange.
    This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these
securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful prior to registration or qualification under the securities laws
of such jurisdiction. The Offering may only be made in Canada in the
jurisdictions where the preliminary prospectus was filed.

    Veraz is a Calgary based junior resource exploration stage company which
is focused on international oil and gas exploration and development
opportunities.
    A preliminary prospectus containing important information relating to
these securities has been filed with securities commissions or similar
authorities in certain jurisdictions of Canada. The preliminary prospectus is
still subject to completion or amendment. Copies of the preliminary prospectus
may be obtained on the Corporation's profile at www.sedar.com or by contacting
Peters & Co. Limited by telephone (403) 261-4850. There will not be any sale
or any acceptance of an offer to buy the securities until a receipt for the
final prospectus has been issued.

    This news release contains forward-looking statements or forward-looking
information. These forward looking statements are subject to a variety of
risks and uncertainties beyond the Corporation's ability to control or predict
which could cause actual events or results to differ materially from those
anticipated in such forward looking statements. Such risks and uncertainties
are disclosed under the headings "Special Note Regarding Forward-Looking
Statements" and "Risk Factors" in the Preliminary Prospectus. Forward-looking
information is in addition based on various assumptions, including, without
limitation, assumptions about general business and economic conditions and the
availability of financing on reasonable terms. Should one or more of these
risks and uncertainties materialize, or should the underlying assumption prove
incorrect or different, actual results may vary materially from those
described in the forward-looking statements. All forward looking statements
speak only as of the date of this news release. Accordingly, readers should
not place undue reliance on forward-looking statements.





For further information:

For further information: Gerardjan ("Oppe") Cosijn, President and Chief
Executive Officer, Phone: (403) 781-7931, Fax: (403) 514-0383, Email:
oppe.cosijn@verazpetroleum.com, www.verazpetroleum.com; Colin Christie, CA,
CFA, Vice President, Finance and Chief Financial Officer, Phone: (403)
781-7931, Fax: (403) 514-0383, Email: colin.christie@verazpetroleum.com,
www.verazpetroleum.com

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Veraz Petroleum Ltd.

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