Mahalo Energy Ltd.
TSX : CBM

Mahalo Energy Ltd.
Peregrine Energy Ltd.
TSX : PEG

Peregrine Energy Ltd.

June 01, 2006 08:30 ET

Mahalo Energy Ltd. Announces Closing of Acquisition of Peregrine Energy Ltd.

CALGARY, ALBERTA--(CCNMatthews - June 1, 2006) -

(Not for distribution to U.S. newswire services or for dissemination in the United States of America)

Mahalo Energy Ltd. (TSX:CBM) ("Mahalo") and Peregrine Energy Ltd. (TSX:PEG) ("Peregrine") announce today that the previously announced Plan of Arrangement (the "Arrangement") involving Mahalo and Peregrine has been completed, subject to final court approval. The Arrangement was approved at the special meeting of shareholders of Peregrine where holders of common shares of Peregrine voted 98.66% in favour of the Arrangement resolution. Mahalo issued 15,153,624 common shares to the former shareholders of Peregrine on completion of the Arrangement.

Mahalo now has 58,286,030 common shares outstanding.

It is anticipated that Peregrine's common shares will be delisted from the Toronto Stock Exchange at the close of business on June 5, 2006.

Mr. Gary Gardiner will join the board of Directors of Mahalo and will also act as the Chief Executive Officer of the combined entity. Mr. Duncan Chisholm, current President and Chief Executive Officer of Mahalo, will act as the President and Chief Operating Officer of the combined entity. The new management team will also consist of Mr. Art Flaws as Senior Vice President, Mr. David Burton as Vice President Engineering, Mr. George Hardisty as Vice President, Land and Business Development, Mr. Vernon Haberlack as Vice President Production, Mr. Ed Marcinew as Vice President Exploration and Mr. William Dawidowski as Vice President, Finance and Chief Financial Officer and Lindsay Goos as Controller.

Certain information set forth in this document, including management's assessment of future plans and operations, contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond each party's control, including the risks of successfully completing the proposed Arrangement, the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements, and accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits will be derived there from. Each disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required pursuant to applicable securities legislation.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Mahalo Energy Ltd.
    William Gallacher
    Chairman
    (403) 262-9623
    (403) 262-7049 (FAX)
    or
    Mahalo Energy Ltd.
    Gary Gardiner
    Chief Executive Officer
    (403) 262-9623
    (403) 262-7049 (FAX)
    or
    Mahalo Energy Ltd.
    Duncan Chisholm
    President and Chief Operating Officer
    (403) 262-9623
    (403) 262-7049 (FAX)
    or
    Mahalo Energy Ltd.
    201B, 218 - 8th Avenue SW
    Calgary, Alberta T2P 1B5
    (403) 262-9623
    (403) 262-7049 (FAX)