San Telmo Energy Announces Private Placement And Granting Of Stock Options
Monday, May 17, 2004
VANCOUVER, B.C., MAY 17, 2004 - San Telmo Energy Ltd. (OTCBB: STUOF; TSX-V: STU) announces a non-brokered private placement for proceeds of CDN $2,800,000. The placement is for 4,000,000 units at a price of $0.70 per unit. Each private placement unit will consist of one common share and one common share purchase warrant. The warrants will be exercisable at a price of $0.82 for a period of two years. 700,000 of the private placement units will consist of one flow-through share and one common share purchase warrant.
The private placement is subject to approval by the TSX Venture Exchange.
The proceeds of this placement will be used to tie-in production at San Telmo's recently announced gas discovery at Teepee Creek, Alberta and to drill an additional exploration well at Teepee Creek and for general corporate purposes.
Granting of Options
San Telmo has granted 1,900,000 director and employee options exercisable at a price of $0.82 for five years. These options will vest over time in accordance with the company's stock option plan, which has been approved by the shareholders. In addition, the Company wishes to amend 1,100,000 director and employee options granted October 31, 2003 from an exercise price of $1.95 to $0.82.
The granting of stock options is subject to approval of the TSX Venture Exchange.
ABOUT SAN TELMO ENERGY LTD.
San Telmo Energy Ltd. is an emerging oil and gas company with an experienced management team. Operated through its wholly owned subsidiary San Telmo Energy Inc. of Calgary, Alberta, San Telmo Energy Ltd. is focused on acquiring, developing and producing proven developed and underdeveloped reserves which offer long term value for the company.
FOR FURTHER INFORMATION
Corporate Communications
(877) 772-9286
info@santelmoenergy.com, or the company website at www.santelmoenergy.com
FORWARD-LOOKING STATEMENT
This release may contain forward-looking statements, within the meaning of the "safe-harbour" provision of the Private Securities Litigation Reform Act of 1995, regarding San Telmo Energy's business or financial condition. Actual results could differ materially from those described in this news release as a result of numerous factors, some of which are outside of the control of the company.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
