Resolute Energy Inc.

Resolute Energy Inc.
Cordero Energy Inc.

Cordero Energy Inc.

April 29, 2005 15:28 ET

Cordero Energy Inc. Commencing Operations: Common Shares Expected to Commence Trading on May 3, 2005


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: RESOLUTE ENERGY INC.

TSX SYMBOL: RSE

AND CORDERO ENERGY INC.

APRIL 29, 2005 - 15:28 ET

Cordero Energy Inc. Commencing Operations: Common
Shares Expected to Commence Trading on May 3, 2005

CALGARY, ALBERTA--(CCNMatthews - April 29, 2005) - Following the
successful closing today of the Plan of Arrangement (the "Arrangement")
involving Resolute Energy Inc. (TSX:RSE) ("Resolute"), Resolute's
securityholders and Esprit Energy Trust ("Esprit"), Resolute is pleased
to announce that Cordero Energy Inc. ("Cordero" or the "Company") is
commencing operations as an independent exploration and coalbed methane
development company on April 30, 2005. Cordero's common shares will be
listed on the Toronto Stock Exchange under the trading symbol "COR" and
are expected to commence trading on May 3, 2005. The final day on which
Resolute common shares may be traded will be May 2, 2005.

Cordero commences operations with total mineral leases encompassing
89,000 net acres, of which 68,600 net acres are classified as
undeveloped, proved plus probable reserves of approximately 26.9 billion
cubic feet equivalent of natural gas (evaluated as at December 31, 2004)
and current natural gas production of approximately 4.2 million cubic
feet per day. Production is anticipated to increase to approximately 8.5
million cubic feet per day by mid-year upon completion of facilities for
the first phase of the Company's coalbed methane (CBM) development
project in central Alberta.

Cordero's management team consists of David Elgie, President and Chief
Executive Officer, Brian Lemke, Executive Chairman, Dean Setoguchi,
Chief Financial Officer and Richard Gleasure, Chief Operating Officer.
In addition to Mr. Lemke and Mr. Elgie, the Board of Directors includes
Douglas Baldwin, Barry Jackson, Douglas Manner, Robert Rooney, Jeff
Smith and Phil Swift. All of the officers and directors are former
executives, managers or directors of Resolute.

In addition to the officers and directors, the 16 person Cordero team
comprises 6 geoscientists, 3 operations and engineering professionals, a
drilling and completions manager, 3 land professionals and 3 finance and
administrative professionals. All of the officers, directors and
professional team have invested directly in the Company and, upon
exercise of the arrangement warrants by former Resolute shareholders,
will own approximately 16% of Cordero's basic outstanding common shares.

Cordero's strategy will be to develop, expand and realize the potential
of its extensive Horseshoe Canyon CBM holdings in Central Alberta and
concurrently pursue new exploration opportunities in other areas.

The first phase of CBM development is expected to reach full operations
by mid-year, upon completion of facilities, gathering system and well
tie-ins following spring break-up. 47 wells have been drilled or
re-completed to date, including 31 wells in the first quarter of 2005.
In addition to production from the Horseshoe Canyon coals, Cordero has
tested significant additional rates from conventional Belly River sands
underlying the coal formations. Coal and conventional production will be
separately produced and metered and, based on total tested production,
are expected to exceed facilities capacity when all of the wells are
tied in. A further 25 well program is scheduled to commence following
the harvest season, with a corresponding increase in compression
facilities at that time. In total, Cordero anticipates drilling up to 60
wells over the coming year.

Exploration initiatives are expected to leverage the strength and
experience of Cordero's geoscientists in the Deep Basin, Northern
Alberta and Northeast BC. A number of near-term opportunities have been
identified for later in 2005, as well as longer term prospects under way
for 2006.

Initial financing for the Company was provided by a $5.5 million private
placement to management, employees and directors prior to closing the
Arrangement and interim credit facilities of $15 million. The interim
credit facility will convert to a $12 million revolving term credit
facility at the end of May

As a result of the Arrangement and completion of the initial financing,
Cordero currently has issued and outstanding 22,263,599 common shares,
arrangement warrants entitling the holders thereof to acquire an
aggregate of 1,914,796 common shares, 1,916,376 warrants, each being
exercisable into one common share and 725,900 performance shares, each
being convertible into one common share.

Up to $5.5 million of additional funding is anticipated during May 2005
from the exercise of Cordero arrangement warrants. The arrangement
warrants will be distributed following closing to the former Resolute
shareholders and entitle them to acquire additional Cordero common
shares at an exercise price of $2.87 per share, which is equal to the
price for the common shares and performance warrants issued to
management, employees and directors in the private placement. The
Cordero arrangement warrants, if not exercised, will expire on May 30,
2005. Shareholders are strongly encouraged to evaluate the merits of
exercising these warrants and making their investment decision within
the one-month exercise period. Beneficial shareholders should contact
their broker or nominee to discuss the Cordero arrangement warrants.

The corporate information contained in these pages contains
forward-looking forecast information. The reader is cautioned that
assumptions used in the preparation of such information, although
considered reasonable by Cordero at the time of preparation, may prove
to be incorrect. The actual results achieved during the forecast period
will vary from the information provided herein and the variations may be
material. Consequently, there is no representation by Cordero that
actual results achieved during the forecast period will be the same in
whole or in part as those forecast.

Based in Calgary, Alberta, Resolute's common shares (RSE) trade on the
Toronto Stock Exchange. Following May 2, 2005, they will no longer be
listed for trading and Cordero (COR) will commence trading on the
Toronto Stock Exchange. Resolute's website is www.resoluteenergy.com.
Cordero's website, www.corderoenergy.com, is under construction.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Cordero Energy Inc.
    David Elgie
    President and Chief Executive Officer
    (403) 265-7006
    or
    Cordero Energy Inc.
    C. Dean Setoguchi
    Vice President and Chief Financial Officer
    (403) 265-7006
    Website: www.corderoenergy.com (under construction)