Private Placement, Petrolifera now has 121,758,510 Common Shares

Petrolifera Petroleum announces closing of private placement

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CALGARY, Sept. 15 /CNW/ - Petrolifera Petroleum Limited ("Petrolifera" or the "Corporation") (PDP - TSX) announces that it has closed a non-brokered private placement of 1,137,500 units ("Units") at a price of $0.88 per Unit to directors and officers of the Corporation for gross proceeds of $1,001,000 (the "Private Placement"). 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, 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.


The Units offered pursuant to the Private Placement were issued on the same terms as those offered pursuant to the recent public offering (the "Public Offering") by the Corporation of 56,820,000 Units and 8,523,000 Units upon the exercise of the underwriters' over-allotment option, as previously announced on August 28, 2009 and September 4, 2009, respectively.


The net proceeds of the Private Placement will be added to the proceeds from the Public Offering and will be used to fund a portion of the Corporation's exploration capital expenditure program, primarily in Colombia during the balance of 2009 and into 2010, to reduce indebtedness relating to the Corporation's reserve-backed credit facility and for working capital.


After giving effect to the Private Placement, Petrolifera now has 121,758,510 Common Shares and 33,240,250 Warrants outstanding.

Pescod sees this Nat Gas Rally As Buyer Beware

We wrote just last week about what next for natural gas, according to Bob Hoye and his team at Chart Works that had predicted a natural gas rally on September 2nd,and they’ve certainly gotten it.

However, they are look-ing for a ten to 12 day event, followed by something that might not be a lot of joy in the natural gas sector.

We caught up with Bobby Lamond, the Calgary vet-eran and long-time player in the natural gas sector whohas spent much of the last year sending people chartsand warning everyone about how ugly it could get in thissector.

When we caught up with him on Friday, he says,“it’s been the perfect storm for natural gas” over the lastyear. “Anything that could go wrong” he says, “hadgone wrong” and he has never seen a worse time for the natural gas sector.

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