VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 17, 2010) -
NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Petro Vista Energy Corp. ("Petro Vista" or the "Company") (TSX VENTURE:PTV), an independent oil and gas exploration and production company, announces that it intends to carry out a private placement of convertible promissory notes (the "Notes") to raise proceeds of C$3,000,000.
The Notes will have the following terms:
(a) the principal amount of the Notes will be repayable by the Company on the date that is two years following the date of issuance of the Notes, unless, prior to that date, the Notes are converted into units of the Company (as described below) or repaid in full by the Company;
(b) interest will accrue on the outstanding principal amount of the Notes at the rate of 10% per annum, not compounded, payable on maturity, conversion or repayment;
(c) the Notes will be unsecured; and
(d) the principal amount of the Notes will be convertible, at the election of the holder, into units of the Company at any time following the date that is three months after the date of issuance of the Notes at the rate of one common share for each C
.17 of principal amount. Each unit will be comprised of one common share of the Company and one transferable warrant, with each such warrant being exercisable to purchase one common share of the Company at a price of
.20 per share for a period of two years following the date of issuance of the Notes.
The proceeds of the private placement will be used by the Company for general working capital purposes, including the repayment of outstanding liabilities and to cover the completion costs on the Tartaruga development well in Brazil which is the Company's remaining obligation to earn its interest in the Tartaruga Block.
All securities issued or issuable under the private placement will be subject to a four month holder period under applicable Canadian securities laws, in addition to such other restrictions as may be applicable under securities laws outside Canada.
No finder's fee will be payable in respect of the private placement.
The completion of the private placement is subject to the acceptance of the TSX Venture Exchange.
About Petro Vista Energy
Headquartered in San Clemente, California, USA, Petro Vista Energy Corp., is an independent exploration company engaged in the acquisition, exploration and development of oil and natural gas properties located in South America. The Company has exploration, development and production rights to over 169,000 acres gross (59,000 net) leasehold acres in Colombia and Brazil. The Company's website at www.pvecorp.com provides additional information about the Company's plans, including photographs and other information with respect to its operations and asset.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the Company's securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration is available. Any public offering of securities in the United States must be made by means of a prospectus that contains detailed information about the Company and its management, as well as financial statements.
ON BEHALF OF PETRO VISTA ENERGY CORP.
"Read Taylor"
Read B. Taylor, President and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.