August 24, 2009 (FinancialWire) — Conquest Petroleum Inc. (OTCBB: CQPT), an independent oil and gas company headquartered in Houston, Texas, has entered into a Standby Equity Distribution Agreement  with a fund managed by Yorkville Advisors, LLC.

This financing arrangement is part of Conquest’s ongoing restructuring efforts. Conquest intends to utilize proceeds from the SEDA for working capital, reworking of existing oil & gas wells, and the repayment of debt.

Pioneered eight years ago by Yorkville, the SEDA format offers companies a cost-effective way to raise capital to fund their business plans. The SEDA is designed to enable Conquest, at its discretion, to sell up to 4.62 million shares of its common stock to Yorkville’s fund in tranches over a 24-month term. No tranche may exceed an amount related to the daily volume of the common stock in the 5 days preceding a draw down request. Pursuant to the SEDA, the stock issued under each tranche is priced at 93.5% of the lowest daily volume weighted average price during the 5 trading days following the date in which the draw down is requested. Yorkville has and will receive certain cost reimbursement and commitment fees.

Conquest’s management team is led by president and CEO Robert D. Johnson who has over 40 years experience in the oil & gas industry. Conquest has been restructuring its business for the last 15 months. Such efforts are on going and have resulted in the following achievements: reducing cash burn rate by over 84%, reducing debt by $54 million to $9.3 million through the sale of non-strategic California and Arkansas properties and debt conversions, restructuring the board of directors and management with seasoned oil & gas professionals, settling contingent liabilities of over $3 million on a non-cash basis, and settling a major environmental lawsuit in its Delhi field of north Louisiana.

Robert D. Johnson commented, “We believe that having the ability to sell up to 4.62 million shares of common stock on such advantageous terms should significantly improve our balance sheet and help us to develop a portion of our low risk proved oil & gas reserve base, which in turn should enhance our profitability. We would like to thank Yorkville for their confidence in our management team and our business plan.”

Richard Brand, Managing director of Yorkville, commented, “Yorkville sees great potential in the investment opportunity presented by Conquest Petroleum. We believe that Robert D. Johnson and the rest of his management team have strategically realigned to meet its obligations in the growing demands of the oil & gas industry.”

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