Mises Capital Corporation

Mises Capital Corporation

May 26, 2006 17:16 ET

Mises Capital Corporation Enters Into Formal Agreement

CALGARY, ALBERTA--(CCNMatthews - May 26, 2006) - Mises Capital Corporation (TSX VENTURE:MPP.P) ("Mises" or the "Corporation") is pleased to announce that it has entered into a formal agreement ("Agreement") with Union Temporal Omega Energy ("UTOE"), a privately held joint enterprise, providing for the terms and conditions of its previously announced proposed acquisition of certain interests in producing petroleum and natural gas assets located in the Republic of Colombia (the "Acquisition"), such acquisition intended to be the qualifying transaction ("Qualifying Transaction") of Mises under the policies of the TSX Venture Exchange ("TSXV").

Under the Agreement, Mises proposes to acquire from UTOE a participating interest in the net profits earned on the crude oil production from the Bolivar - 1 well ("Bolivar - 1") for the cash consideration of US$1,000,000. The Acquisition will entitle Mises to receive a maximum of 50% of the net revenues generated from Bolivar - 1 on gross production of up to 70 Bbls per day. Mises will not receive any additional revenues on gross production that exceeds 70 Bbls per day. The net profits interest also makes Mises responsible for its share of capital costs for Bolivar - 1, calculated on an annual basis.

Bolivar - 1 produces oil from the La Luna Formation in a 55 foot zone at a depth of approximately 2,950 feet. Bolivar - 1 is located on the Buenavista Block, a 10,000 hectare (24,700 acres) area approximately 200 kilometers north-east of Bogota.

Mises and UTOE have also executed, in escrow, a commercial agreement ("Commercial Agreement") providing for the terms and conditions of further exploration and exploitation of the Buenavista Block. The Commercial Agreement will become operative only upon the issuance by the TSXV of its final bulletin approving the Qualifying Transaction. Under the Commercial Agreement, Mises and UTOE are proposing to drill and complete a development well on the Buenavista Block prior to December 31, 2006, subject to rig availability, with Mises to pay for 90% of such costs to earn a 45% net profits interest in such well.

Mises' participation under the Commercial Agreement includes the obligation to pay for 100% of the costs of a minimum 40 kilometre seismic program on the Buenavista Block up to a maximum of US$750,000. In the event that the costs under such program exceeds US$750,000, such excess costs will be shared equally by UTOE and Mises. Mises has also agreed to reimburse UTOE for approximately 50% of the costs of an initial remedial cement program performed on Bolivar-1, in the amount of US $300,000 net to Mises, no later than thirty (30) days after the issuance by the TSXV of its final bulletin approving the Qualifying Transaction. In the event that Mises' share of costs of the seismic program and the remedial cement program are not paid to UTOE on or prior to September 1, 2006, UTOE will re-purchase the net profits interest in Bolivar - 1 for US$1,000,000, net of a 20% penalty and any net revenues paid to Mises under the Agreement up to September 1, 2006, and the agreements between Mises and UTOE will terminate effective as of that date.

Funding for Mises' obligations under the Commercial Agreement are anticipated to be provided through the previously announced brokered private placement of up to 7,500,000 Common Shares at $0.40 per share for gross proceeds of up to $3,000,000, with an over-allotment option of 15% of the gross proceeds of the offering. The offering will be conducted on a commercially reasonable efforts agency basis lead by Blackmont Capital Inc. who will be joined by Leede Financial Markets Inc., as a syndicate partner.

Closing the Acquisition is subject to standard conditions, including satisfactory completion of due diligence, final board approval, completion of a satisfactory sponsorship report and approval of the TSXV as the Corporation's Qualifying Transaction.

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

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