Attached files
EXHIBIT
99.1
Pacific
Asia Petroleum, Inc. raises $20 million in Registered Direct
Offering
Hartsdale,
New York, February 10, 2010: Pacific Asia Petroleum,
Inc. (NYSE Amex: PAP) (the “Company”), a US-based energy company engaged
in the development, production and distribution of oil and gas, announced today
that Company has entered into definitive agreements with certain accredited
investors (the “Investors”) to sell in a registered direct offering an aggregate
of 5 million shares of its common stock at a price of $4.00 per share for
aggregate gross proceeds of $20 million. In addition, the Company
will, at closing, issue to the Investors two series of warrants. The
Series A Warrants shall provide the Investors the right to purchase up to an
additional 2 million shares, in the aggregate, with an exercise price equal to
$4.50, which warrants shall be exercisable commencing 6 months following the
closing for a period of 30 months. The Series B Warrants shall
provide the Investors the right to purchase up to an additional 2 million
shares, in the aggregate, at the common stock offering price, or $4 per share,
which warrants shall be exercisable immediately until November 1,
2010. If fully exercised, the Series A Warrants and Series B Warrant
would result in additional gross proceeds to the Company of $17
million.
On the
conclusion of the direct offering, President and CEO, Frank C. Ingriselli
commented, "We are very pleased to announce the entry into agreements with
investors for this offering, the closing of which will represent the
accomplishment of a significant milestone in the pending acquisition of rights
in the Oyo Oilfield. The participation of major institutional investors in
this offering highlight the confidence the investor community has put in our
business strategy and the Company’s future growth through this major
acquisition. We look forward to closing this offering and completing the
Oyo acquisition as planned and continuing our goal of delivering on shareholder
value.”
Rodman
& Renshaw, LLC, a wholly owned subsidiary of Rodman & Renshaw Capital
Group, Inc. (Nasdaq: RODM), acted as the Company's exclusive placement agent in
connection with the offering.
The
offering is expected to close on or around February 16, 2010, subject to
customary closing conditions.
The
shares and warrants in this offering are being issued under a shelf registration
statement declared effective by the Securities and Exchange Commission (the
"SEC") on February 3, 2010. A prospectus supplement related to the
public offering will be filed with the SEC. Copies of the final prospectus
supplement and accompanying prospectus relating to the offering may be obtained
from Rodman & Renshaw, LLC, 1251 Avenue of the Americas 20th Floor, New
York, NY 10020 or by calling (212) 356-0549. An electronic copy of the
prospectus is also available on the SEC's web-site at http://www.sec.gov
.
For more
detailed information on this financing, please refer to the Company's Form 8-K
and related exhibits to be filed with the SEC on or around February 10,
2010.
This
press release shall not constitute an offer to sell or the solicitation of an
offer to buy, nor shall there be any sale of these securities in any state or
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any such state or
jurisdiction.
For more
information on the Company and its planned acquisition of rights in the Oyo
Oilfield, please visit www.papetroleum.com.
About
Pacific Asia Petroleum, Inc.
Pacific
Asia Petroleum, Inc. (NYSE Amex: PAP) is a U.S. publicly-traded energy company
engaged in the development, production and distribution of oil and gas and is
focused on early cash flow, high return projects. The Company controls the
rights to significant gas acreage under contract in China and is a strategic
partner with several major energy companies in high-value oil fields in
China. The Company was founded in 2005 by a group of former senior
Texaco executives and is led by President and CEO Frank C.
Ingriselli. Pacific Asia Petroleum is headquartered in Hartsdale, New
York, and also has offices in Beijing, China.
Media
Contact:
Pacific
Asia Petroleum, Inc.
Bonnie
Tang
bonnietang@papetroleum.com
(914)
472-6070
www.papetroleum.com
Investor
Relations Contact:
Liviakis
Financial Communications, Inc
John
Liviakis
(415)
389-4670
John@Liviakis.com
www.liviakis.com
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CAUTIONARY
STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE
HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995
Some of
the items discussed in this press release are forward-looking statements about
Pacific Asia Petroleum’s activities. Words such as “anticipates,” “expects,”
“plans,” “projects,” “believes,” “seeks,” “estimates,” and similar expressions
are intended to identify such forward-looking statements. The statements are
based upon management’s current expectations, estimates and projections, are not
guarantees of future performance, and are subject to certain risks,
uncertainties and other factors, some of which are beyond the Company’s control
and are difficult to predict. Among the factors are changes in prices of, demand
for and supply of crude oil and natural gas; actions of competitors; results of
additional testing; timely development of production opportunities and acquired
technologies; the potential disruption or interruption of testing and
development activities due to accidents, political events, civil unrest, or
severe weather; government-mandated restrictions on scope of company operations;
general economic and political conditions; the Company’s need and ability to
obtain capital; the Company’s ability to successfully consummate the
transactions contemplated with CAMAC pursuant to the Purchase and Sale Agreement
and other acquisitions, obtain required government approvals, and integrate the
acquired entities and operations into the Company’s business; and other risks
described in the Company’s filings with the Securities and Exchange Commission.
You should not place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. Unless legally required,
Pacific Asia Petroleum undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information, future
events or otherwise.
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