E4 Energy Inc.

E4 Energy Inc.

January 08, 2008 19:00 ET

E4 Energy Inc. Obtains Interim Order and Announces Meeting

CALGARY, ALBERTA--(Marketwire - Jan. 8, 2008) - E4 Energy Inc. ("E4") (TSX VENTURE:EFE) is pleased to announce that it has obtained an interim order of the Court of Queen's Bench of Alberta providing for, among other things, the holding of a special meeting of the shareholders of E4 to approve the previously announced arrangement under the Business Corporations Act (Alberta) (the "Arrangement") with Twin Butte Energy Ltd. ("Twin Butte").

A special meeting of the holders of common shares of E4 (the "E4 Shareholders") will be held in respect of the Arrangement at the Sandman Hotel, 888 - 7th Avenue S.W., Calgary, Alberta, on Thursday, February 7, 2008 at 9:00 a.m. (Calgary time).

E4 will mail a management information circular and proxy statement respecting the meeting to the E4 Shareholders on January 10, 2008. Following mailing, the information circular and proxy statement will be available for viewing electronically under E4's profile on SEDAR at www.sedar.com.

Pursuant to the Arrangement, Twin Butte will acquire, subject to certain conditions, all of the issued and outstanding common shares of E4, for total consideration of approximately $55.6 million, including the assumption of approximately $17.2 million of net debt (the "Transaction"). Under the terms of the Transaction, Twin Butte will issue approximately 15.66 million common shares to the shareholders of E4 based on an exchange ratio of 0.3673 of a Twin Butte common share for each common share of E4.

The completion of the Arrangement is subject to certain conditions, including the receipt of the approval of the E4 Shareholders and the final approval of the Court of Queen's Bench of Alberta and all applicable regulatory authorities. If all necessary approvals are obtained and the conditions to the completion of the Arrangement are satisfied or waived, E4 anticipates that the Arrangement will become effective on or about February 8, 2008.

The Board of Directors of E4 has unanimously determined that the Arrangement is in the best interests of E4 and its shareholders. The Board of Directors unanimously recommends that the holders of common shares of E4 vote to approve the Arrangement at the meeting planned for February 7, 2008.

Reader Advisory

Certain information regarding E4 set forth in this news release including management's assessment of E4's future plans and operations, the effect of the Transaction on E4 and on shareholders of E4, timing of matters relating to the approval of the Transaction and implementation thereof, contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond E4's control including, without limitation, the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, lack of availability of qualified personnel, stock market volatility, ability to access sufficient capital from internal and external sources, uncertainty related to completion of the Transaction and the effect thereof and failure to receive required shareholder and regulatory and other approvals. E4's actual results, performance or achievements may differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that E4 will derive therefrom. Additional information on these and other factors that could affect E4's results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), at Twin Butte's website (www.twinbutteenergy.com) or E4's website (www.e4energy.ca). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and E4 does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • E4 Energy Inc.
    Paul Starnino
    President & Chief Executive Officer
    (403) 266-6747 ext: 27
    E4 Energy Inc.
    Franco Civitarese
    Vice President Finance & Chief Financial Officer
    (403) 266-6747 ext: 31
    Website: www.e4energy.ca
    E4 Energy Inc.
    Suite 540, 840 - 6th Avenue S.W.
    Calgary, Alberta T2P 3E5