Petrolifera Petroleum announces closing of over-allotment option

Petrolifera Petroleum announces closing of over-allotment option

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CALGARY, Sept. 4 /CNW/ - Petrolifera Petroleum Limited ("Petrolifera" or the "Corporation") announced today that it has closed its previously announced over-allotment option (the "Over-Allotment Option") pursuant to the Corporation's equity offering of units ("Units") announced on August 12, 2009 (the "Offering").

The exercise of the Over-Allotment Option resulted in the issuance of 8,523,000 Units at a price of $0.88 per Unit for gross proceeds of $7,500,240. Each Unit consists of one common share in the capital of the Corporation (each, a "Common Share") and one-half of one Common Share purchase warrant of the Corporation (each whole Common Share purchase warrant, a "Warrant"). Each Warrant entitles the holder thereof to purchase one Common Share (each a "Warrant Share") at an exercise price of $1.20 per Warrant Share at any time up to 5:00 pm (Calgary time) on August 28, 2011. In the event that the 20-day volume weighted average price of the Common Shares on the

Toronto Stock Exchange (or such other stock exchange or quotation system on which the Common Shares are listed and where a majority of the trading volume occurs), exceeds $2.50 per Common Share, the Corporation may, within five business days after such an event, provide notice to the holders of Warrants ("Warrantholders") of early expiry and thereafter the Warrants will expire on the date which is 30 days after the date of the notice to the Warrantholders. As a result of the exercise of the

Over-Allotment Option, the aggregate gross proceeds to Petrolifera of the Offering was approximately $57.5 million. Upon closing of the Over-Allotment Option, the Corporation has 120,621,010 Common Shares and 32,671,500 Warrants issued and outstanding on a basic basis and 156,631,677 Common Shares issued and outstanding on a fully diluted basis.