Pacific Stratus Announces $125 Million Financing


    TORONTO, April 5 /CNW/ - Pacific Stratus Energy Ltd. (TSX-PSE) announced
today that it has entered into an agreement with a syndicate of investment
dealers led by GMP Securities L.P., and including Cormark Securities Inc.,
Westwind Partners Inc., Orion Securities Inc., Wellington West Capital Markets
Inc. and Fraser Mackenzie Limited (the "Underwriters"), which have agreed to
purchase, subject to the terms of the underwriting agreement, 12.5 million
common shares of Pacific Stratus at a purchase price of $10.00 per share, for
aggregate gross proceeds in the amount of $125 million. Pacific Stratus plans
to use the net proceeds of this financing for the repayment of its 13% senior
unsecured notes, completion of the 2007 drilling program at La Creciente, the
construction of the La Creciente production facilities and gas pipeline, the
development of Moriche and the construction of production facilities, the
technical evaluation of new blocks in the Llanos Basin, and for general
corporate purposes.
    The company has granted to the Underwriters an option, exercisable in
whole or in part up to 48 hours prior to the closing of the offering, to
purchase up to an additional 1.875 million common shares at the offering
price. If the option is fully exercised, the total gross proceeds of the
financing will be $143.75 million. The common shares to be issued under the
offering will be offered by way of a short form prospectus in all the
provinces of Canada, other than Quebec, and in the United States on a private
placement basis pursuant to an exemption from the registration requirements of
the United States Securities Act of 1933, as amended.
    The offering is scheduled to close on or about April 19, 2007 and is
subject to certain conditions including, but not limited to, the receipt of
all necessary approvals including the approval of the Toronto Stock Exchange
and the securities regulatory authorities.
    The preliminary short form prospectus in respect of the financing was
previously filed on March 16, 2007.

    Pacific Stratus Energy is a Canadian-based oil and gas company that
initiated operations in 2004. The company is focused on identifying attractive
opportunities primarily within the upstream Sub Andean basins. Pacific Stratus
has a current net production of 2,200 barrels of oil per day, with working
interests in the Caguan, Dindal, Rio Seco, Puli B, Doima (currently under
dispute), La Creciente, Moriche and Guama blocks in Colombia. The company has
offices in Toronto, Caracas and Bogota. Further information is available on
our website at

    This press release may contain forward-looking statements based on
assumptions, uncertainties and management's best estimates of future events.
Actual results may differ materially from those currently anticipated.
Investors are cautioned that such forward-looking statements involve risks and
uncertainties. Important factors that could cause actual results to differ
materially from those expressed or implied by such forward looking statements
are detailed from time to time in the company's periodic reports filed with
the Ontario Securities Commission and other regulatory authorities. The
company has no intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
    The securities being offered have not been, and will not be, registered
under the United States Securities Act of 1933, as amended (the "1933 Act"),
and may not be offered or sold within the United States without registration
under the 1933 Act, or the availability of an exemption from the registration
requirements under the 1933 Act. This release does 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 state in which such offer, solicitation or sale would
be unlawful.

    %SEDAR: 00008913E

For further information:

For further information: Manfred Kruger, Vice President - Investor
Relations, (416) 362-7735,

Organization Profile

Pacific Stratus Energy Corp.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890