/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION
IN THE UNITED STATES/
CALGARY and LONDON, Nov. 26 /CNW/ - Solana Resources Limited (TSX-V: SOR; AIM: SORL), the Colombia focussed independent oil and gas exploration and production company, announces today, that it has closed its previously announced "bought deal" financing to a syndicate of underwriters led by Tristone Capital Inc. and including Orion Securities Inc., Westwind Partners Inc., and Toll Cross Securities Inc. (collectively, the "Underwriters"). The Company issued and sold 24,330,000 common shares at a price of C$2.20 per share for gross proceeds of C$53,526,000. Solana is also pleased to announce that an over-allotment option granted to the Underwriters to purchase an additional 2,970,000 common shares at C$2.20 per share has been fully exercised. Total gross proceeds from the financing, including the over-allotment option, are C$60,060,000.
Application has been made to the London Stock Exchange for the common shares to be admitted to trading on AIM and admission is expected to take place on November 27, 2007. After giving effect to the financing, Solana has 123,176,792 common shares issued and outstanding.
Solana intends to use the net proceeds of this financing to fund exploration and development of its Colombian oil and gas assets and for general corporate purposes.
This news release shall not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction. The common shares may be offered or sold in other eligible foreign jurisdictions and to U.S. buyers on a private placement basis pursuant to an applicable exemption from registration requirements in Rule 144-A or Regulation D of the United States Securities Act of 1933, as amended.
Forward Looking Statements
Certain information regarding the Company, including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, mechanical problems, equipment limitations, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources; as a consequence, actual results may differ materially from those anticipated.
Solana Resources Limited
Solana (www.solanaresources.com ) is an international resource company engaged in the acquisition, exploration, development and production of oil and natural gas. The Company's properties are located in Colombia, South America and are held through its wholly owned subsidiary, Solana Petroleum Exploration (Colombia) Limited. The company is headquartered in Calgary, Alberta Canada.
Additional information (which does not form part of this announcement) is available on the Company's website at www.solanaresources.com or the Sedar website at www.sedar.com.
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