Update: Sintana & Colcan Announce Closing of Bought Deal Private Placement

    




 /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN  THE U.S./ 

 TORONTO, April 25, 2012 /CNW/ - Sintana Energy Inc. ("Sintana" or the "Corporation")  and ColCan Energy Corp. ("ColCan") are pleased to announce that they have closed the previously  announced $11 million bought-deal private placement financing of  subscription receipts (the "Subscription Receipts") of ColCan, announced on April 10, 2012, for gross proceeds of  $11,000,010 (the "Offering").  The syndicate of underwriters was co-led by Canaccord Genuity Corp.  and Cormark Securities Inc. and included Casimir Capital Ltd., Clarus  Securities Inc. and GMP Securities L.P. (collectively, the "Underwriters"). 

 Each Subscription Receipt represents the right to automatically receive  one (1) common share (a "ColCan Share") in the capital of ColCan immediately prior to the completion of the  business combination between Sintana and ColCan, previously announced  on March 13, 2012 (the "Transaction"). On completion of the Transaction, each of the ColCan Shares  (including those issuable pursuant to conversion of the Subscription  Receipts under the Offering) will be exchanged for one and a half (1.5)  common shares ("Sintana Shares") in the capital of Sintana. 

 The Subscription Receipts were issued on a private placement basis and  are subject to an indefinite hold period, which commences from the date  hereof; however, it is expected that the Sintana Shares issuable in  connection with the Transaction (including those issued in connection  with the conversion of the Subscription Receipts) will be freely  tradable on closing of the Transaction and shall be listed and posted  for trading on the TSX Venture Exchange (the "Exchange"). The net proceeds of the Offering will be used by the combined  company to fund its capital expenditure program in South America and  for general corporate purposes. 

 ColCan has also granted the Underwriters an option, (the "Over-Allotment Option") exercisable in whole or in part, for 30 days following the date  hereof, to purchase up to an additional 13,333,300 Subscription  Receipts to cover over-allotments, if any, and for market stabilization  purposes, at a price of $0.30 per Subscription Receipt for additional  aggregate gross proceeds of up to $4 million. 

 The securities offered have not been and will not be registered under  the U.S. Securities Act of 1933, as amended, and may not be offered or  sold in the United States absent registration or applicable exemption  from the registration requirements. 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 the securities in any jurisdiction in which  such offer, solicitation or sale would be unlawful 

 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 press  release. 

 Forward-Looking Statements and Information: The forward-looking  statements contained in this press release are based on certain key  expectations and assumptions made by either Sintana or ColCan,  including with respect to the use of proceeds of the Offering and the  issuance of Sintana Shares, including those issuable in connection with  the Transaction, expectations and assumptions concerning receipt and  timing of receipt of required regulatory approvals, including the  Exchange, and third party consents and the satisfaction of other  conditions to the completion of the Offering and the listing of said  securities. 

 Although Sintana and ColCan believe that the expectations and  assumptions on which the forward-looking statements are based are  reasonable, undue reliance should not be placed on the forward-looking  statements because Sintana and ColCan can give no assurance that they  will prove to be correct. Since forward-looking statements address  future events and conditions, by their very nature they involve  inherent risks and uncertainties. Actual results could differ  materially from those currently anticipated due to a number of factors  and risks. These include, but are not limited to, the failure to obtain  necessary regulatory or shareholder approvals, including the Exchange,  or the failure satisfy the conditions to closing the Offering, risks  associated with the oil and gas industry in general (e.g., operational  risks in development, exploration and production; delays or changes in  plans with respect to exploration or development projects or capital  expenditures, the uncertainty of reserve estimates, the uncertainty of  estimates and projections relating to production, costs and expenses,  and health, safety and environmental risks), commodity price and  exchange rate fluctuations and uncertainties resulting from potential  delays or changes in plans with respect to exploration or development  projects or capital expenditures. Certain of these risks are set out in  more detail in Sintana's Management Discussion and Analysis which has  been filed on SEDAR and can be accessed at www.sedar.com. 

 The forward-looking statements contained in this document are made as of  the date hereof and Sintana and ColCan undertake no obligation to  update publicly or revise any forward-looking statements or  information, whether as a result of new information, future events or  otherwise, unless so required by applicable securities laws. 

 Completion of the Transaction is subject to a number of conditions,  including the approval of the Exchange and the receipt of all  applicable shareholder approvals. The Transaction cannot close until  all required regulatory and shareholder approvals are obtained. There  can be no assurance that the Transaction will be completed as proposed  or at all. Investors are cautioned that, except as disclosed in any  management information circular or filing statement to be prepared in  connection with the Transaction, any information released or received  with respect to the proposed Transaction may not be accurate or  complete and should not be relied upon. Trading in the securities of  Sintana should be considered highly speculative. The Exchange has in no  way passed upon the merits of the proposed Transaction and has neither  approved nor disapproved the contents of this press release. 

Sintana Energy Inc.


CONTACT:  Keith Spickelmier, Executive Chairman, Sintana Energy Inc.Telephone: [phone]E-mail: [e-mail] MacMicken, President & Chief Operating Officer, ColCan Energy Corp.Telephone: [phone]E-mail: [e-mail] 


    

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