Donner Petroleum Ltd.

Crocotta Energy Inc.

Crocotta Energy Inc.

January 15, 2007 12:42 ET

Donner Petroleum Announces Results of Meeting

CALGARY, ALBERTA--(CCNMatthews - Jan. 15, 2007) - Donner Petroleum Ltd. (the"Corporation") is pleased to announce that its shareholders voted in favour of changing the name of the Corporation to Crocotta Energy Inc. ("Crocotta") and consolidating the common shares of the Corporation on a 13.5135 to 1 basis. Shareholders also voted in favour of adopting a new stock option plan, changing the outstanding non-voting shares into common shares on a 1 for 1 basis and creating new classes of special voting shares and preferred shares.

Crocotta currently has 23.9 million common shares outstanding and working capital of approximately $13.5 million. In addition, Crocotta has a put and call obligation agreement to issue an additional 6.1 million common shares at $1.00 per share for proceeds of $6.1 million. If exercised, Crocotta would have 30.0 million shares outstanding and working capital of approximately $19.6 million.

Crocotta has production of approximately 100 boepd plus undeveloped land and farm-in acreage totalling 24,000 acres. Crocotta's properties are focused in West Central Alberta, Southern Alberta Foothills and Northeast B.C. Crocotta has started an active drilling program on its properties and will also look to expand its operations through additional acquisitions and farm-ins.

Boe's 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)