Direct Energy

Direct Energy

November 14, 2007 21:02 ET

Direct Energy Enters Agreement to Acquire Rockyview Energy Inc.

TORONTO, ONTARIO--(Marketwire - Nov. 14, 2007) - Direct Energy, one of North America's largest energy and energy-related services providers, today announced that it has entered into an agreement to offer to acquire all of the issued and outstanding common shares of Rockyview Energy Inc. (TSX:RVE) for cash consideration of C$3.16 per share, a 29 per cent premium over the 20-day weighted average closing price on the TSX ending November 14, 2007; for a total consideration of C$113.3 million (Pounds Sterling 56.9 million) including the assumption of debt.

Rockyview Energy is an oil and gas company with conventional oil and gas and coal-bed methane operations in central Alberta, western Alberta and the Peace River Arch. In addition to a production base of 2,700 boe per day (of which 97% is natural gas), Rockyview has a 100,000 acre undeveloped land portfolio with numerous identified drilling locations.

"Rockyview Energy is an excellent strategic and operational fit with Direct Energy's Canadian assets and is in line with our strategy of increasing our level of gas reserves to supply our Canadian and north-eastern United States retail customers and becoming an increasingly integrated energy business," said Deryk King, Chairman and Chief Executive Officer of Direct Energy. "The acquisition of Rockyview Energy will add net proven and probable gas reserves of 43.2 Bcfe and increase the natural gas production level of our Alberta operations to in excess of 100 mmcfe/day."

Direct Energy owns and operates approximately 3,000 natural gas wells in Alberta, three gas-fired electrical power plants in Texas, is a leading retailer of green power in Canada and has renewable power purchase agreements totalling 813MW in Texas.

The transaction is subject to shareholder and regulatory approval and is expected to close in January 2008. CIBC World Markets Inc. acted as exclusive financial advisor to Direct Energy with respect to the acquisition.

About Direct Energy

Direct Energy is one of North America's largest energy and energy-related services providers with over 5 million residential and commercial customer relationships. Direct Energy provides customers with choice and support in managing their energy costs through a portfolio of innovative products and services. A subsidiary of Centrica plc (LSE:CNA), one of the world's leading integrated energy companies, Direct Energy operates in Texas, the north-eastern United States and across Canada. To learn more about Direct Energy, visit www.directenergy.com.

Contact Information