Coral Sea Resources Inc.
TSX VENTURE : CSX

December 17, 2009 15:41 ET

Coral Sea Resources and Sagres Energy Announce Update on the Proposed Reverse Take-Over of Coral Sea Resources

CALGARY, ALBERTA--(Marketwire - Dec. 17, 2009) -

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

Coral Sea Resources Inc. ("Coral Sea") (TSX VENTURE:CSX) and Sagres Energy Inc. ("Sagres"), an international oil and gas exploration company with an exploration portfolio in Guyana and Jamaica, announce that the definitive agreements for the proposed reverse take-over of Coral Sea by Sagres (the "Acquisition") and concurrent subscription receipt financing of Coral Sea are substantially complete. The parties are continuing to work with the TSX Venture Exchange to obtain all required approvals to resume trading in the common shares of Coral Sea and will announce further details of the transactions when appropriate.

About Coral Sea

Coral Sea Resources Inc. is a publicly traded company listed on the TSXV and trading under the symbol "CSX". Coral Sea owns petroleum and natural gas assets in the Nevis area of Alberta.

The parties expect to apply for an exemption from the sponsorship requirements of the TSX Venture Exchange in connection with the Acquisition. There can be no assurances that such exemption will be granted or be granted on terms satisfactory to the parties.

In accordance with the policies of the TSX Venture Exchange, trading in Coral Sea shares is currently halted and will remain halted until further notice.

Coral Sea and Sagres caution that no definitive agreement has been entered into and accordingly no assurance can be given that the process contemplated by the letter of intent will lead to a definitive agreement relating to the Acquisition on the terms contemplated by the letter of intent or otherwise or any other transaction. Neither Coral Sea nor Sagres intend to make any further announcements or communications regarding these potential transactions until either a definitive agreement has been reached or discussions are terminated without such an agreement being reached.

Completion of the Acquisition is subject to a number of conditions, including TSX Venture Exchange acceptance and shareholder approval (including on a disinterested basis to the extent required). The Acquisition cannot close until the required shareholder approval is obtained. There can be no assurance that the Acquisition will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the management information circular to be prepared in connection with the Acquisition, any information released or received with respect to the Acquisition may not be accurate or complete and should not be relied upon. Trading in the securities of Coral Sea Resources Inc. should be considered highly speculative.

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

  • Coral Sea Resources Inc.
    John Mackay
    President
    (403) 218-6509
    or
    Sagres Energy Inc.
    Dr. David Johnson
    President
    (403) 978-9878
    or
    Sagres Energy Inc.
    Jason Bednar
    Chief Financial Officer
    (403) 607-4607