Gusella sells out shareholders again

Petrolifera shares drop after equity offering plan

Thomson Reuters


TORONTO, Aug 13 (Reuters) - Shares of Petrolifera Petroleum
fell almost 20 percent on Thursday after the small,
Canadian-based energy company unveiled a plan to offer up to
C$50 million ($45.9 million) in common share and warrants.

Petrolifera, which operates in Argentina, Colombia and
Peru, was down 25 Canadian cents at C$1.09 in afternoon trading
on the Toronto Stock Exchange. The stock has fallen in the past
year from a high of C$5.84.

Calgary-based Petrolifera said it planned to use the
proceeds from the offering to help fund its exploration program
and reduce debt, as well as for working capital.

Common equity offerings can dilute the existing shareholder
base, which can then cause the market value of the shares to
drop.

($1=$1.09 Canadian)