Whittier Energy Closes Private Equity Offering

Whittier Energy has completed the initial closing of a private placement of units ("Units"), with each Unit consisting of 15,000 shares of the Company's common stock and a warrant to purchase an additional 15,000 shares of common stock at an exercise price of $2.50 per share. The Company may issue up to 92 Units at a purchase price of $26,250 per Unit, representing total proceeds to the Company of up to $2,415,000. The Company used the net proceeds from the initial closing to finance, in part, its recently announced acquisition of various operated working interests in three gas fields in South Texas.

The Company is obligated to file a registration statement to register the common stock issued in the offering and the common stock to be issued upon exercise of the warrants for resale. If a registration statement is not declared effective on or before the six month anniversary of the final closing date of the offering, each purchaser will receive additional Units (or a portion thereof) representing 25% of such purchaser's original subscription.

The securities offered were not registered under the Securities Act of 1933 or any state securities laws and, absent registration or an applicable exemption from such registration, may not be offered or sold in the United States. This announcement is neither an offer to sell nor a solicitation of an offer to buy any of the securities issued in the private placement.