Cyries Energy Inc.
TSX : CYS

Cyries Energy Inc.

October 29, 2007 09:01 ET

Cyries Energy Inc. Announces $35 Million Acquisition of Private Company

CALGARY, ALBERTA--(Marketwire - Oct. 29, 2007) - Cyries Energy Inc. ("Cyries") (TSX:CYS) announces today that it has entered into a share purchase agreement with a private company (the "Private Company") and the shareholders of the Private Company pursuant to which Cyries has agreed to purchase all of the issued and outstanding shares in the capital of the Private Company in exchange for 0.6449 of a common share of Cyries and $0.21 in cash for each Private Company common share. Cyries currently expects to issue an aggregate of approximately 3.1 million Cyries common shares, to pay an aggregate of approximately $1 million in cash and to assume an aggregate of approximately $11.1 million in the Private Company's debt and transaction costs to complete the acquisition.

Cyries currently expects to achieve a number of key financial and operational benefits from the acquisition, including:

- Cyries' production is expected to increase by approximately 850 boe per day, 80% of which is natural gas and 20% of which is light oil and natural gas liquids;

- based on the independent reserves evaluation of the Private Company effective September 30, 2007, Cyries' proved reserves are expected to increase by approximately 1.6 mboe and proved plus probable reserves are expected to increase by approximately 2.1 mboe;

- the assets of the Private Company are located in an attractive part of west central Alberta and contain high liquids content gas; and

- Cyries' undeveloped land is expected to increase by 2,160 net acres and exposes Cyries to a large resource-in-place which lends itself to a number of low-risk exploitation and exploration drilling opportunities.

The acquisition is expected to close by November 5, 2007 and is subject to, among other things, the receipt of the approval for the issuance of Cyries shares from the TSX and the satisfaction of other closing conditions.

Forward Looking Statements

This news release shall not constitute an offer to sell or the solicitation of any offer to buy securities in any jurisdiction. The Cyries Energy Inc. common shares have not been nor will be registered under the United States Securities Act of 1933, and they may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act.

Certain information included in this press release is forward-looking. Forward-looking statements regarding possible events, conditions or results are based on assumptions about future economic conditions and courses of action and include future orientated financial information with respect to prospective results of operations, financial position and cash flows of Cyries. Forward-looking statements may include, without limitation, statements relating to the future financial position, business strategy, budgets, projected costs, capital expenditures, financial results, taxes and plans and objectives of or involving Cyries and potential acquisitions. Many of these statements can be identified by looking for words such as "believe", "expects", "expected", "will", "intends", "projects", "anticipates", "estimates", "continues", or similar words.

Although Cyries believes the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties some of which are described in Cyries' annual information form and other continuous disclosure documents. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Cyries' actual performance and financial results in future periods to differ materially from any conclusion, forecast, projection of future performance or results of operations expressed or implied by such forward-looking statements. Any forward-looking statements are made as of the date hereof and Cyries does not undertake any obligation, except as required under applicable law, to publicly update or revise such statements to reflect new information, subsequent or otherwise.

Contact Information

  • Cyries Energy Inc.
    Donald F. Archibald
    Chairman & C.E.O.
    (403) 262-9609
    (403) 262-0055 (FAX)