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Sintana & ColCan Announce A Best Efforts Private Placement Financing For Minimum Gross Proceeds Of $11 Million

Stocks in this article: SNN

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TORONTO, March 19, 2012 /PRNewswire/ - Sintana Energy Inc. (" Sintana" or the " Corporation") (TSX-V: "SNN")  and ColCan Energy Corp. (" ColCan") are pleased to announce that ColCan has entered into an agreement with a syndicate of agents co-led by Canaccord Genuity Corp. and Cormark Securities Inc. and including Casimir Capital Ltd., and Clarus Capital Ltd. (collectively, the " Agents") for an offering of subscription receipts (" Subscription Receipts") of ColCan on a best efforts private placement basis pursuant to applicable private placement exemptions under applicable securities laws (the " Offering").  The Subscription Receipts will be offered at a price of $0.30 per Subscription Receipt for aggregate minimum gross proceeds of $11 million.

Each Subscription Receipt will represent the right to automatically receive one (1) common share in the capital of ColCan (" ColCan Share") 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.  It is expected that the Sintana Shares issuable in connection with the Transaction (including those issued in connection with the ColCan Subscription Receipts) will be freely tradable on closing of the Transaction. 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.

The Subscription Receipts will be issued pursuant to the terms of a subscription receipt agreement and the gross proceeds of the Offering will be held in escrow by an escrow agent.  Each Subscription Receipt will automatically be exchanged, without payment of any additional consideration or further action on the part of the holder thereof, into one (1) ColCan Share upon delivery of a notice to the escrow agent that the escrow release conditions have been satisfied, including the receipt of all necessary approvals.

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