Canadian Phoenix Resources Corp.
TSX VENTURE : CPH

Canadian Phoenix Resources Corp.

November 06, 2009 18:03 ET

Canadian Phoenix Resources Corp.: Corporate Update

Serrano Energy Ltd. - Strategic Alternatives Process and Updated Reserve Information

CALGARY, ALBERTA--(Marketwire - Nov. 6, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

CANADIAN PHOENIX RESOURCES CORP. ("Canadian Phoenix" or the "Corporation") (TSX VENTURE:CPH) is pleased to provide the following update:

SERRANO ENERGY LTD. – STRATEGIC ALTERNATIVES PROCESS

The Corporation's controlled subsidiary Serrano Energy Ltd. ("Serrano") announced today that the Board of Directors of Serrano has initiated a process to evaluate various strategic alternatives for Serrano. These alternatives may include a sale, merger, major asset disposition, major financing, or any other alternative to assist in unlocking additional value for the benefit of all Serrano shareholders. For this purpose, Serrano has retained Cormark Securities Inc. to act as its exclusive financial advisor to assist in the review process.

Neither Canadian Phoenix nor Serrano expect to update the progress with respect to the review of the alternatives until the Board of Directors of both Canadian Phoenix and Serrano authorizes any transaction or if required by applicable disclosure requirements. There can be no assurance that any transaction will occur or, if one is undertaken, any certainty with regard to its terms or timing.

SERRANO – UPDATED ENGINEERING REPORT

In conjunction with the strategic alternatives review, Serrano had its independent reserves engineer, GLJ Petroleum Consultants, complete a mid-year reserve report in accordance with National Instrument 51-101, effective September 1, 2009. Information concerning the mid-year reserves update can be found under Serrano's corporate listing on www.SEDAR.com.

CANADIAN PHOENIX LOAN FROM SERRANO

Serrano has loaned Canadian Phoenix $1.4 million by way of a promissory note which is secured by a general security agreement over the assets of Canadian Phoenix, other than Canadian Phoenix's investment in Marble Point Energy Ltd. The note bears interest at 15% per annum and is due December 15, 2009 but may be extended to March 31, 2010 if certain conditions are satisfied. The funds were advanced to the Corporation to assist it in meeting certain financial drilling commitments with another industry partner.

Canadian Phoenix Resources Corp. is a publicly-traded junior oil and gas exploration, development and production company with operations in Western Canada. Canadian Phoenix's shares trade on the TSX Venture Exchange under the symbol "CPH".

FORWARD-LOOKING STATEMENTS: This news release contains forward-looking information, including but not limited to Serrano's ability to enter into and complete any future transaction, Serrano's assessment of future reserves values and operational plans and the Corporation's ability to repay the secured debt. All statements and information other than statements of historical fact are forward-looking information. In some cases, forward-looking information can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", or the negative of these terms or other comparable terminology. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the control of Canadian Phoenix, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits Canadian Phoenix will derive therefrom. The forward-looking statements and information contained in this news release are made as of the date hereof and Canadian Phoenix undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Canadian Phoenix Resources Corp.
    Robert Chenery
    Interim Chief Executive Officer
    (403) 920-0040
    or
    Canadian Phoenix Resources Corp.
    Adeline Martin
    Interim Chief Financial Officer
    (403) 705-1192