Crocotta Energy Inc.
TSX : CTA

Crocotta Energy Inc.

September 22, 2009 19:03 ET

Crocotta Energy Announces Hiring of Advisor to Sell Properties and Private Placement to Management

CALGARY, ALBERTA--(Marketwire - Sept. 22, 2009) - Crocotta Energy Inc. ("Crocotta" or the "Company") (TSX:CTA) is pleased to announce that it has engaged Rundle Energy Partners to market for disposition certain properties in west-central Alberta totalling 1,280 BOE/d of production comprised of 50% light oil and NGLs and 50% natural gas. As previously announced, Crocotta will sell a minimum of 500 BOE/d prior to year-end with proceeds to be used to reduce debt and fund development of its resource style assets in the Bluesky at Edson in west-central Alberta and the Montney at Dawson in northeast British Columbia. It is anticipated that interested parties will be required to bid by early November with closing anticipated by the end of 2009.

Crocotta is also proposing to complete a private placement of up to 1.2 million units (the "Units") at $1.05 per Unit with each Unit consisting of one common share of Crocotta (a "Common Share") and a Common Share purchase warrant (a "Warrant") that will allow the holder to purchase an additional Common Share at a price of $1.40 per share until the date that is 3 years after the date of issuance (the "Private Placement"). The Private Placement is expected to close on or about October 22, 2009 and will be subject to normal regulatory hold periods and to Toronto Stock Exchange approval. The placement will be subscribed 100% by management of Crocotta and will materially increase their position in the Company, further aligning them with the interests of Crocotta shareholders. Of the 1.2 million Units, 1.0 million Units will be purchased by the President & CEO of Crocotta.

Crocotta Energy Inc. is a Calgary based company focused on the acquisition of, exploration for and development of oil and natural gas properties in western Canada.

Forward-Looking Information

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "should", "believe", "intends", "forecast", "plans", "guidance" and similar expressions are intended to identify forward-looking statements or information.

More particularly and without limitation, this document contains forward looking statements and information relating to the Company's oil, NGLs and natural gas production, timing of asset dispositions and use of proceeds from such dispositions. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company, including expectations and assumptions relating to prevailing commodity prices and exchange rates, applicable royalty rates and tax laws, future well production rates, the performance of existing wells, the success of drilling new wells, the availability of capital to undertake planned activities and the availability and cost of labour and services.

Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, it can give no assurance that such expectations will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the uncertainty of estimates and projections relating to production rates, costs and expenses, commodity price and exchange rate fluctuations, marketing and transportation, environmental risks, competition, the ability to access sufficient capital from internal and external sources and changes in tax, royalty and environmental legislation. The forward-looking statements and information contained in this document are made as of the date hereof for the purpose of providing the readers with the Company's expectations for the coming year. The forward-looking statements and information may not be appropriate for other purposes. The Company 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.

BOE Conversions

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Contact Information

  • Crocotta Energy Inc.
    Robert Zakresky
    President and Chief Executive Officer
    (403) 538-3736
    or
    Crocotta Energy Inc.
    Nolan Chicoine
    Vice President, Finance and Chief Financial Officer
    (403) 538-3738
    or
    Crocotta Energy Inc.
    700, 639 -5th Ave SW
    Calgary, Alberta T2P 0M9
    (403) 538-3737
    (403) 538-3735 (FAX)
    www.crocotta.ca