BVR Bolivar Energy Corp.

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES


Bolivar Energy Corp. ("Bolivar" or the "Company") (TSX VENTURE:BVR) is pleased
to announce that it has entered into a purchase agreement with Pacific Rubiales
Energy Corp. ("Pacific Rubiales") whereby Bolivar will purchase Pacific
Rubiales' 32.5% interest in and operatorship of the Arrendajo Block in the
Llanos Basin, Colombia. Final approval of the arrangement is subject to
regulatory approval by the Agencia Nacional de Hidrocarburos ("ANH") and by
partners in the Block. 


For the purchase of the 32.5% operating interest in the Arrendajo Block, Bolivar
will pay US$6.5 million cash in addition to reimbursing Pacific Rubiales
approximately US$3.44 million for its share of phase 5 and 6 costs already
incurred. Going forward, Bolivar will assume any future costs in its 32.5%
pro-rata participating interest for the combined phases 5 and 6 of the
Exploration and Production Contract. 


John Moreland, President and CEO of Bolivar states: "Bolivar is very excited at
the prospect of assuming a material ownership stake in the Arrendajo Block. We
are encouraged by the technical merit and potential of the Block and look
forward to near-term news flow from the expected Q1/2011 drilling of a well. We
are pleased to have concluded this initial deal with Pacific Rubiales and look
forward to a long and prosperous relationship with them in the future." 


Work on the Arrendajo Block is currently ongoing, with three separate 3D seismic
acquisition programs in progress. The partners in the Block intend to commence
the drilling of a well on the Arrendajo Block in Q1/2011. 


The Arrendajo Block comprises 31,606 gross hectares (10,272 net) and offers
multi-zone stacked potential. The Block is located close to numerous producing
fields in the Central Llanos Basin which include: Las Abejas, Chaparrito, Los
Toros, Palmarito, Sirenas, Corocora and Dorotea. 


The Offering: 

Bolivar is also pleased to announce that it has entered into an agreement with
Raymond James Ltd. and Haywood Securities Inc. as co-lead underwriters and
including Paradigm Capital Inc. (collectively, the "Underwriters"), for the sale
of 70,588,300 units of the Company (the "Units"), on a bought deal basis, at a
price of $0.17 per Unit for gross proceeds of $12,000,011 (the "Offering"). Each
Unit shall consist of one common share of the Company (the "Common Shares") and
one-half of one Common Share purchase warrant of the Company (each whole
warrant, a "Warrant"). Each Warrant will be exercisable for one additional
Common Share at a price of $0.25, subject to adjustment, for a period of 24
months from the Closing Date (as defined below).


In addition, the Underwriters shall have the option to purchase up to an
additional 15% of the Units issued, exercisable in whole or in part at any time
up to 48 hours prior to the Closing Date, at the same price and terms as the
Offering for additional gross proceeds of up to $1,800,002.


The net proceeds from the Offering will be used to fund the exploration and
development of the Company's petroleum assets in Colombia and for general
business development, acquisitions, and working capital purposes.


The Units will be offered by way of private placement to accredited investors
under applicable securities laws in the Provinces of Quebec, Ontario, Alberta,
Saskatchewan and British Columbia and such other jurisdictions in Canada as the
Co-lead Underwriters and the Corporation may agree. 


The Offering is scheduled to close on or about February 15, 2011 (the "Closing
Date") and is subject to certain conditions including, but not limited to, the
receipt of all necessary approvals including the approval of the TSX Venture
Exchange and the securities regulatory authorities.


This news release does not constitute an offer to sell or a solicitation of an
offer to buy any of the 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, or for the account or benefit of U.S.
persons (as defined in Regulation S under the 1933 Act) absent such registration
or an applicable exemption from such registration requirements.


About Bolivar Energy Corp. 

Bolivar Energy Corp. is an early stage exploration company active in the Llanos
Basin in Colombia, and trading on the TSX Venture Exchange under the symbol
"BVR". 


Forward-Looking Statement 

This news release includes forward-looking statements related to the expected
occurrences in relation to the properties identified. A multitude of factors can
cause actual events to differ significantly from any anticipated development and
although the Company believes that the expectations represented by such a
forward-looking statement are reasonable; there can be no assurance that such
expectations will be realized. These forward looking statements are based upon
assumptions that the Company has made concerning the oil and gas industry in
Colombia, the reliability of available data regarding the properties, and the
continuing market for oil and gas. Risk factors may include the uncertainty of
conducting operations under a foreign regime, the availability of labour and
equipment, the fluctuating price of oil and gas, and the Company's dependence
upon other participants in the property areas. Neither the Company nor any of
its subsidiaries nor any of its officers or employees guarantees that the
assumptions underlying such forward-looking statements are free from errors, nor
do any of the foregoing accept any responsibility for the future accuracy of the
opinions expressed in this document or the actual occurrence of the forecasted
developments.

Bolivar Energy Corp. (TSXV:BVR)
Historical Stock Chart
From May 2024 to Jun 2024

Bolivar Energy Corp. (TSXV:BVR)
Historical Stock Chart
From Jun 2023 to Jun 2024