Seven Seas Closes $45 Million Financing

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Seven Seas Closes $45 Million Financing
    HOUSTON, July 24 /PRNewswire/ -- Seven Seas Petroleum Inc. (Amex: SEV)
announced today that after a one-day delay of the scheduled closing, it has
completed a $45 million financing with Chesapeake Energy Corporation
(NYSE: CHK) and a group of qualified investors led by Robert A. Hefner III,
the Chairman and Chief Executive Officer of Seven Seas.  Chesapeake Energy
Corporation purchased $22.5 million of 12% senior secured notes with
detachable warrants to purchase approximately 12.6 million shares of Seven
Seas common stock at an exercise price of approximately $1.78 per share.  The
group of qualified investors purchased $22.5 million of 12% short-term secured
notes.  As previously announced, the Company will file a registration
statement as soon as possible with the U.S. Securities and Exchange Commission
(SEC) for a shareholders rights offering for the sale of $22.5 million of
12% senior secured notes with detachable warrants to purchase approximately
12.6 million shares of Seven Seas common stock.  Proceeds from the rights
offering will be used to redeem the $22.5 million short-term secured notes
sold to the qualified investor group.  The details concerning an offer to
shareholders will be set forth in the registration statement.  Additional
information on the sale of notes to Chesapeake and the group of qualified
investors is available on a Form 8-K filed with the SEC on July 18, 2001.
    "With the $45 million in hand, we can continue the development of the
Guaduas Oil Field and commence the subthrust exploration well after we receive
the one remaining environmental permit.  Our target is to commence drilling in
the fourth quarter of the year," stated Mr. Hefner.
    Seven Seas Petroleum Inc. is an independent oil and gas exploration and
production company operating in Colombia, South America.  The Company's
primary emphasis is on further exploration, development and production of the
Guaduas Oil Field, located in Colombia's prolific Magdalena Basin.
    This press release does not constitute an offer of any securities for
sale.
    Statements regarding anticipated oil and gas production and other oil and
gas operating activities, including the costs and timing of those activities,
are "forward looking statements" within the meaning of the Securities
Litigation Reform Act.  The statements involve risks that could significantly
impact Seven Seas Petroleum Inc.  These risks include, but are not limited to,
adverse general economic conditions, operating hazards, drilling risks,
inherent uncertainties in interpreting engineering and geologic data,
competition, reduced availability of drilling and other well services,
fluctuations in oil and gas prices and prices for drilling and other well
services and government regulation and foreign political risks, as well as
other risks discussed in detail in the Seven Seas Petroleum Inc.'s filings
with the U.S. Securities and Exchange Commission.
SOURCE Seven Seas Petroleum Inc.
http://www.sevenseaspetro.com
Company News On-Call:
http://www.prnewswire.com/comp/123145.html
CONTACT:
Bryan Sanchez, Investor Relations of Seven
Seas Petroleum Inc., +1-713-622-8218