Drake Energy Ltd.

April 13, 2010 16:05 ET

Drake Energy Ltd.: Press Release

CALGARY, ALBERTA--(Marketwire - April 13, 2010) - Drake Energy Ltd. ("Drake" or the "Corporation") (TSX VENTURE:DPE) announces that, after a review of its current share price, production and cash flows, debt levels, and scarcity of equity investment capital, among other matters, its board of directors has initiated a process to identify and consider strategic alternatives with a view to enhancing shareholder value. Strategic alternatives may include, but are not limited to, sale of the corporation, recapitalization, merger or other business combination, a sale of a material portion of the Company's assets, farmin or farmout or acquisition, among other alternatives.

Drake continues to trade at a substantial discount to its net asset value despite having a major land position in its core area of Sousa in northern Alberta and ownership of the extensive gathering and processing infrastructure. The board of directors has determined that it is an appropriate time to assess strategic options.

The board of directors will consider various alternatives and may engage outside advisors if deemed necessary. Drake does not intend to disclose developments with respect to the strategic review process until the board of directors has approved a definitive transaction or strategic option, unless otherwise determined or required by law. There are no guarantees that the process will result in a transaction or, if a transaction is entered into, as to its terms or timing.

Neither the TSX Venture Exchange nor its Regulator Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this release.

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