Amarone Oil & Gas Ltd. announces $50 million private placement financing and property acquisition

    CALGARY, Jan. 21 /CNW/ - Amarone Oil & Gas Ltd. ("Amarone" or the
"Corporation") is pleased to announce that it has entered into a $50 million
non-brokered private placement financing (the "KERN Financing") with KERN
Energy Partners Management II Ltd. ("KERN") and has closed a minor property
acquisition from Provident Energy Trust.
    The KERN Financing is structured as an equity line whereby KERN has
subscribed for up to $50 million of common shares of the Corporation. In
addition, employees, management and directors acquired 3,173,300 common shares
of the Corporation at $1.50 per share for proceeds of $4.76 million, all but
50,000 of which shares were issued as "flow-through" shares. The proceeds from
these financings will be used to fund the Company's acquisition, exploration
and development programs.
    Amarone and Provident Energy Trust have established a good will
relationship leading to the Corporation's first property acquisition. This
acquisition consists of nominal production and 2.5 gross sections of land with
horizontal drilling upside. The acquisition closed on January 10, 2008.
    Amarone's leadership team includes Monty Bowers, Chairman and CEO; Don
Stachiw, President and COO; John Lamacchia, Executive Vice President
Engineering and Operations and Brenda Mawhinney, Vice President Finance and
CFO along with an intact technical team formerly with Capitol Energy Resources
Ltd. The Board of Directors is comprised of Monty Bowers, John Brussa, Jason
Montemurro, Jim Nieuwenburg, Murray Nunns and Don Stachiw.

    Amarone is an emerging, private Calgary based junior oil and natural gas
company focused on building shareholder value through accretive acquisitions,
internally generated exploration and development drilling opportunities and
pursuit of quality, complimentary farm-in opportunities.

                                SPECIAL NOTES

    Certain statements contained in this document are "forward-looking
statements". The projections, estimates and beliefs contained in such
forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause actual results or events to differ materially
from those anticipated in any forward-looking statements. Amarone believes the
expectations reflected in those forward-looking statements are reasonable;
however Amarone cannot provide any assurance that these expectations will
prove to be correct.

    This news release shall not constitute an offer to sell, or the
solicitation of an offer to buy, securities in the United States, or any
province or territory of Canada, nor shall there be any sale of the securities
in any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of
any such jurisdiction. Amarone's securities will not be, and have not been,
registered under the United States Securities Act of 1933 and may not be
offered or sold in the United States absent registration or an applicable
exemption from the registration requirements of that Act.

For further information:

For further information: Monty Bowers, Chairman and CEO, T: (403)
265-1805 Ex 321, F: (403) 265-1952, E:; Don Stachiw,
President and COO, T: (403) 265-1805 Ex 307, F: (403) 265-1952, E:; Brenda Mawhinney, Vice President Finance and CFO, T:
(403) 265-1805 Ex 317, F: (403) 265-1952, E:,
Website: (under construction)

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