Batavia Energy Corp.

March 12, 2010 12:39 ET

Batavia Energy Corp. Announces Business Combination

TORONTO, ONTARIO--(Marketwire - March 12, 2010) - Batavia Energy Corp. (formerly, Ausnoram Holdings Limited) (the "Company") is pleased to announce that it has completed an arm's length business combination (the "Business Combination") with Batavia Energy Inc. ("Batavia"). The parties completed the Business Combination by way of a three-cornered amalgamation (the "Amalgamation"), wherein Condelta Inc., a wholly-owned subsidiary of the Company amalgamated with Batavia and have continued as one company under the Business Corporations Act (Ontario) under the name Batavia Energy Inc.

Pursuant to the Amalgamation, the Company will issue 20,520,410 common shares (the "Ausnoram Shares") at a deemed price of $0.20 per share, to the holders of the common shares of Batavia (the "Batavia Shares") to acquire a 100% interest in Batavia. In addition, each of the current holders of the 1,000,000 stock options (the "Batavia Options"), a CDN$750,000 principal amount convertible promissory note and a CDN$75,000 principal amount promissory note (collectively, the "Batavia Notes") of Batavia will receive an equal number of replacement stock options, convertible promissory notes and promissory notes of the Company, which shall be exercisable on the same terms and conditions as the Batavia Options and Batavia Notes, as applicable.

Batavia, the wholly-owned subsidiary of the Company, will continue to pursue the natural gas exploration and development projects of coal bed methane gas in Indonesia and shallow gas in Alberta.

Batavia and its partners on the Sekayu CBM Block spudded the first commercial CBM well in Indonesia in the fall of 2009. The results from the CBM-SE-2 well indicated an economic project, and a second well is planned for the first half of 2010. Batavia is carried on the Sekayu CBM Block up to US$13 million of field activities.

In addition, Batavia will start field activities in 2010 related to its Alberta shallow gas project. The 2010 exploration program includes an aerial resistivity survey, geochemical work, and exploration wells on 2 ½ townships of land in Southeastern Alberta.

Batavia Summary Financial Information 
  Year Ended   Year Ended
  October 31, 2008   October 31, 2009
  (audited)   (audited)
  (CAD $ thousands)   (CAD $ thousands)
Net income (loss) (693,365)   (486,162)
Cash and cash equivalents 712,861   2,628
Total assets 2,779,520   2,453,855
Working capital 328,514   (55,953)
Shareholder's equity 1,378,091   1,119,075

Certain statements contained in this press release constitute "forward looking statements". These statements are based on current expectations of management, however are subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from the forward-looking statements in this news release. Readers are cautioned not to place undue reliance on these statements. The Company does not undertake any obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise after the date hereof, except as required by securities laws.

Shares Outstanding: 1,020,312

Contact Information