Rock Energy Inc.
TSX : RE

Rock Energy Inc.

September 28, 2007 16:24 ET

Rock Energy Announces Closing of Private Placement to ARC and Greenbank Plan of Arrangement and Director Changes

CALGARY, ALBERTA--(Marketwire - Sept. 28, 2007) - Rock Energy Inc. (TSX:RE) ("Rock") is pleased to announce that today it has closed the previously announced private placement with ARC Energy Fund 5 and the plan of arrangement with Greenbank Energy Ltd. (a private company).

The plan of arrangement was approved by the court of Queen's Bench of Alberta on September 27 and today Rock issued approximately 3.143 million shares and $12.1 million to acquire all of the outstanding shares of Greenbank. Rock issued approximately 2.999 million shares for proceeds of $12.1 million to ARC Energy Fund 5 in the private placement. The proceeds of the private placement were used to fund the cash portion of the Greenbank acquisition. Rock now has approximately 25.789 million shares outstanding of which ARC Energy Fund 5 and other funds advised by ARC Financial Corp. ("ARC") control 26.5% of the shares. ARC is Canada's largest private equity firm focused on investing in junior energy companies.

In conjunction with the closing Matt Brister has resigned as a director and Malcolm Adams, Vice President of ARC, has joined Rock's board. Rock would like to thank Matt for his considerable and valuable contribution to the company and wish him all the best with his future endeavours. Rock is pleased to have Malcolm join the board. Mr. Adams is a Professional Engineer and an ICD.D certified director who brings industry and board experience to Rock.

Advisory

This news release shall not constitute an offer to sell or a solicitation of an offer to buy the security to be distributed pursuant to the plan of arrangement. Such securities will not be and have not been registered under the United States Security Act of 1993, and may not be offered or sold in the United States absent registration or an exemption from registration.

This press release contains forward-looking statements that involve known and unknown risks, uncertainties, assumptions and other factors, some of which are beyond Rock's control, that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Rock believes that the expectations reflected in those forward-looking statements are reasonable at the time made but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in, or incorporated by reference into, this press release should not be unduly relied upon. These statements speak only as of the date of such information, as the case may be, and may be superseded by subsequent events. Rock does not intend, and does not assume any obligation, to update these forward-looking statements.

This press release contains references to barrels of oil equivalent (boe), boes maybe misleading, particularly if used in isolation. A boe conversion of 6 mcf to 1 barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Contact Information

  • Rock Energy Inc.
    Allen Bey
    President & CEO
    (403) 218-4380
    or
    Rock Energy Inc.
    Peter D. Scott
    Vice President, Finance & CFO
    (403) 218-4380
    Website: www.rockenergy.ca