Amarone Enters $50 Million Private Placement Financing

Amarone Oil & Gas Ltd. has entered into a $50 million non-brokered private placement financing with KERN Energy Partners Management II Ltd. ("KERN") and has closed a minor property acquisition from Provident Energy Trust.

The KERN Financing is structured as an equity line whereby KERN has subscribed for up to $50 million of common shares of the Corporation. In addition, employees, management and directors acquired 3,173,300 common shares of the Corporation at $1.50 per share for proceeds of $4.76 million, all but 50,000 of which shares were issued as "flow-through" shares. The proceeds from these financings will be used to fund the Company's acquisition, exploration and development programs.

Amarone and Provident Energy Trust have established a good will relationship leading to the Corporation's first property acquisition. This acquisition consists of nominal production and 2.5 gross sections of land with horizontal drilling upside. The acquisition closed on January 10, 2008.