Petrosearch Energy Completes Private Placement of $12.6 Mln

Petrosearch Energy Corporation (OTCPK:PTSG) has completed sales of $12.6 million of its common stock in private offerings. Net proceeds to the Company of approximately $11.9 million will be used for general corporate purposes including the drilling of projects in the Company's inventory. There were no warrants or other financial instruments attached to these shares. The Company completed these private placements of 9,692,308 shares of common stock at a price of $1.30 per share to a group of accredited investors primarily consisting of U.S.-based investment funds. Sterne, Agee & Leach, Inc. served as placement agent for $10.6 million of the offerings.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. The shares sold in this private placement have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Richard D. Dole, CEO of Petrosearch, said "The completion of this placement is an important step in implementing the Company's business plan and strategy. We are pleased to establish new relationships with institutional investors who understand and embrace our strategic direction and have demonstrated confidence in the Company to execute the growth strategy." Mr. Dole continued, "Because of our unique business model, we have an abundance of high quality prospects and projects that we constantly evaluate and rank on a dynamic basis. The availability of this new capital will permit us to continue to exploit and grow the value of our current portfolio of assets in addition to undertaking new projects. Specifically, it will allow us to immediately accelerate our drilling activities in several areas of Texas, in the Anadarko Basin of Oklahoma, and in Mississippi."

Petrosearch will have approximately 29 million fully diluted common shares outstanding after the close of this transaction, including 876,923 "in-the-money" warrants. The Company will file a registration statement to register the shares of common stock with the Securities and Exchange Commission within 45 days of the closing date and anticipates moving off of Pink Sheets upon the registration statement becoming effective.


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