Petrolifera raises $7.5-million through overallotment

Sep 2.2009

Petrolifera Petroleum Limited (PDP-T C$0.80) Gavin Wylie - 403-213-7333Financing Closes Craig Butchko - 403-213-7762

Proceeds from Petrolifera's $50M equity financing have been earmarked for debt repaymentand to fund its high-impact exploration through 2009 and into early 2010.

That said, drillingin Peru could be pushed further into 2010 unless a suitable farm-out can be established.Implications¦

Factoring in the newly issued shares (54M) and proceeds, our revised 2P NAV stands at$1.47/share (vs. $2.11/share).

Our estimates assume no proceeds from a potential farm-outin Peru that could recover a portion of the US$28M (100%) spent thus far.¦ For the balance of 2009, Petrolifera's $23M capital budget will include minimal drilling andwell conversions in Argentina, and potential spending associated with a La Pinta re-entry ifthe company can secure a snub-unit.¦

We maintain our 2-Sector Perform rating on Petrolifera and have lowered our one-yeartarget to $1.20 per share (vs. $1.75), which is based on our revised risked NAV of $1.20 pershare (vs. $1.77/share).Recommendation¦

The added cash should help to alleviate Petrolifera's near-term constraints and refocus itsattention to exploration activity in Colombia and Peru..

Thomas Weisel Partners Canada Inc.,

Cormark Securities Inc. and RBC Capital Markets,

Underwriters have a invested HUGE at .88 cents

What do they know that you don't?

They know this was 3.55 cents in June 2009

And this is a possibility again!

Time to get the money back?

I say yes I'm in at .77 cents which is better then .88!

Connacher Oil and Gas Ltd., a significant shareholder of the corporation, did not acquire any additional securities of Petrolifera pursuant to the overallotment option. Following closing of the overallotment option, Connacher will own 26,898,859 common shares and 6,778,000 warrants (approximately 22 per cent of the outstanding common shares) on a basic basis and will own 33,676,859 common shares (approximately 22 per cent of the outstanding common shares) on a fully diluted basis

2009-09-02 09:08 ET - News Release
Mr. Richard Gusella reports

UNDERWRITERS EXERCISE FULL OVER-ALLOTMENT OPTION
Petrolifera Petroleum Ltd. has received notice from Thomas Weisel Partners Canada Inc., Cormark Securities Inc. and RBC Capital Markets, on behalf of the underwriters of the corporation's equity financing announced in Stockwatch on Aug. 12, 2009, that the underwriters have exercised their overallotment option in full to purchase an additional 8,523,000 units at a price of 88 cents per unit for gross proceeds of $7,500,240.

Each unit consists of one common share in the capital of the corporation and one-half of one common share purchase warrant of the corporation. Each warrant entitles the holder thereof to purchase one common share at an exercise price of $1.20 per warrant share at any time up to 5 pm (Calgary time) on Aug. 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, the corporation may, within five business days after such an event, provide notice to the holders of warrants 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 overallotment option, the total gross proceeds to Petrolifera of the offering will now be approximately $57.5-million. The closing of the overallotment option is expected to occur on or about Sept. 4, 2009. Upon closing of the overallotment option, the corporation will have 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.

Connacher Oil and Gas Ltd., a significant shareholder of the corporation, did not acquire any additional securities of Petrolifera pursuant to the overallotment option. Following closing of the overallotment option, Connacher will own 26,898,859 common shares and 6,778,000 warrants (approximately 22 per cent of the outstanding common shares) on a basic basis and will own 33,676,859 common shares (approximately 22 per cent of the outstanding common shares) on a fully diluted basi

China firm set for oil sands joint venture

Calgary
China firm set for oil sands joint venture
Nathan VanderKlippe
RTGAM






Calgary - A Chinese interest is prepared to announce what a Calgary banking source called a "big" joint venture agreement with privately-owned oil sands firm Athabasca Oil Sands Corp.

Rumours of the impending deal, which is scheduled for release later Monday, pushed up shares in several small junior oil sands companies, including UTS Energy Corp. and Connacher Oil and Gas Ltd. , on a belief that major outside investment interests are once again prepared to invest in the oil sands.

"It's great news for the oil sands business. It shows that there are still large, sophisticated, deep-pocketed companies out there prepared to write big cheques," said one Calgary banker.

UTS shares are up about seven per cent; Connacher rose five per cent on morning trading.

Athabasca calls itself the largest leaseholder in the Athabasca region of the oil sands, with 526,000 hectares of net land. It believes it can recover anywhere from seven to 11-billion barrels of crude from that land.

Sveinung Svarte, the president and chief executive of Athabasca, was not immediately available Monday morning. However, in an interview this May, he said the company had spent months searching for joint venture partners.

"That has always been our philosophy to finance our projects," he said then. "We are talking about quite a few billion dollars [in] long-term [capital requirements], and to have a partner coming in and finance a large part of that has been our model."

At the time, he said even with low oil prices, large oil sands properties continued to attract "a lot of interest."

"Even in this market. I would say maybe even more in this market, because I think the buyers have recognized that it's easy to make a deal today," he said. "Because the sellers are a bit more, what shall I say, they expect a bit less than with the price at $147 oil."

The rumoured partner in the deal is the China National Petroleum Corp., which made a $449-million deal for Verenex Energy Inc. in February - although that deal has had troubles proceeding thanks to difficulties in acquiring permission from authorities in Libya, where Verenex has the bulk of its holdings.

CNPC is not, however, the only Chinese company that has moved on Canada's oil sands. Late last year, Sinopec paid about $2-billion for another Calgary company, Tanganyika Oil, which has production-sharing agreements in Syria.

The Athabasca deal shows "that major international companies are game to put up big dough for Canadian oil sands projects. So I'm sure people are looking at that and saying another potentially ready-to-go project is obviously Fort Hills," said another Calgary investment source. "So UTS could be a beneficiary of that."

UTS holds a 20 per cent stake in the proposed Fort Hills oil sands mine, which is majority owned by Suncor Energy Inc. after its acquisition of Petro-Canada. UTS rebuffed a bid by French energy giant Total S.A. to buy that share earlier this year.