Hoodoo Hydrocarbons Ltd.

Hoodoo Hydrocarbons Ltd.

January 06, 2005 11:43 ET

Hoodoo Announces Completion of Acquisition and Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: HOODOO HYDROCARBONS LTD.

TSX VENTURE SYMBOL: HOO

JANUARY 6, 2005 - 11:43 ET

Hoodoo Announces Completion of Acquisition and
Financing

CALGARY, ALBERTA--(CCNMatthews - Jan. 6, 2005) - Hoodoo Hydrocarbons
Ltd. (TSX VENTURE:HOO) ("Hoodoo" or the "Corporation") announced today
that it has completed the acquisition of all of the issued and
outstanding common shares of Terra Rica Resources Ltd. ("Terra Rica"), a
private oil and gas exploration and exploitation corporation. To fund
part of the acquisition, Hoodoo raised $642,500 gross proceeds pursuant
to a private placement of flow-through common shares and common shares
priced at $0.20 per share (the "Private Placement"). Further details of
the Terra Rica acquisition are contained in the Filing Statement filed
on SEDAR on November 26, 2004.

Hoodoo is a public junior oil and gas company engaged in the
acquisition, exploration, exploitation and production of petroleum and
natural gas in western Canada. Hoodoo is listed on the TSX Venture
Exchange under the symbol "HOO" but has been suspended from trading
since July, 2003.

Effective September 15, 2004, Hoodoo was successfully reorganized under
the control of new management. The Corporation is continuing its efforts
to meet minimum listing requirements for a Tier 2 oil and gas issuer and
allow reinstatement of trading of its common shares.

The Acquisition

Hoodoo, on an arm's-length basis, acquired all of the issued and
outstanding common shares of Terra Rica and certain promissory notes,
effective August 1, 2004. The shares and notes were acquired for a total
consideration of $1.5 million, subject to adjustments, with the value
supported by an independent third party evaluation of the oil and gas
assets of Terra Rica. Hoodoo paid cash for the acquisition, such cash
being provided by the Private Placement and debt financing arranged for
the acquisition. Terra Rica is now a wholly-owned subsidiary of Hoodoo.

The Private Placement

The Private Placement Offering consisted of 2,822,500 flow-through
common shares and 390,000 common shares, each priced at $0.20 per share.
Gross proceeds were $642,500, while net proceeds were $609,710. The
shares are all subject to hold periods expiring April 29, 2005. Hoodoo
now has a total of 12,939,862 common shares issued and outstanding on a
non-diluted basis.

Granting of Stock Options

Following Closing and subject to regulatory approval, the board of
directors granted a total of 175,000 options to purchase Hoodoo shares.
Each option is exercisable at a price of $0.20 and has a term of five
years. The options were granted to officers, directors and consultants,
as set out below:



Number of Common
Optionee Shares
Under Option
Officers and Directors 160,000
Consultants 15,000
Total 175,000


ADVISORY: The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. The
information in this news release includes certain information and
statements about management's view of future events, expectations, plans
and prospects that constitute forward looking statements. These
statements are based upon assumptions that are subject to significant
risks and uncertainties. Because of these risks and uncertainties and as
a result of a variety of factors, the actual results, expectations,
achievements or performance may differ materially from those anticipated
and indicated by these forward looking statements. Although Hoodoo
believes that the expectations reflected in forward-looking statements
are reasonable, it can give no assurances that the expectations of any
forward looking statements will prove to be correct. Hoodoo disclaims
any intention and assumes no obligation to update or revise any forward
looking statements to reflect actual results, whether as a result of new
information, future events, changes in assumptions, changes in factors
affecting such forward looking statements or otherwise.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Hoodoo Hydrocarbons Ltd.
    Suite 750, 635-8th Avenue S.W.
    Calgary, AB T2P 3M3
    or
    Hoodoo Hydrocarbons Ltd.
    Douglas Meiklejohn
    Chief Executive Officer
    (403) 232-1405
    Email: dmeiklejohn@hoodoo.ca
    or
    Hoodoo Hydrocarbons Ltd.
    Kurt Miles
    President and Chief Operating Officer
    (403) 232-1406
    Email: kmiles@hoodoo.ca
    Website: www.hoodoo.ca