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| Seven Seas Reports on Status of Rights Offering |
HOUSTON, Oct. 9 /PRNewswire/ -- Seven Seas Petroleum Inc. (Amex: SEV) announced today that Canadian securities authorities have declined its application for relief from Canadian requirements applicable to the Company's planned rights offerings. As a result, Seven Seas will not extend its rights offering to shareholders residing in Canada. The Company applied for relief from Canadian requirements on the basis that it is prepared to provide Canadian resident shareholders the same offering material as it provides to U.S. shareholders under U.S. Securities and Exchange Commission rules and regulations. Adhering to Canadian requirements, which include converting financial statements and oil and gas reserve information to Canadian standards and translating the rights offering materials into French, would result in significant expenses and time delays and would, in the Company's opinion, provide no meaningful additional disclosure or protection to shareholders. The Company estimates that shareholders residing in Canada hold a total of approximately 3.0 million shares, or 8.1% of the Company's outstanding common stock. As previously reported, the Company will mail all shareholders of record as of October 8, 2001, other than Canadian residents, a prospectus for the rights offering as soon as practicable after the effective date of the related registration statement. Shareholders will have thirty days from the day the prospectus is mailed to decide whether to participate. Copies of the prospectus may be obtained by writing or calling: Bryan Sanchez, Investor Relations Seven Seas Petroleum Inc. 5555 San Felipe, Suite 1700 Houston, Texas 77056 Telephone: (713) 622-8218 Email: infossp@sevenseaspetro.com A registration statement relating to these securities has been filed with the U.S. Securities and Exchange Commission, but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. 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. 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.
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Seas Petroleum Inc., +1-713-622-8218
