Shoreline Energy Fund

July 28, 2009 13:18 ET

Shoreline Energy Fund to Acquire Hyperion Exploration Ltd.

TORONTO, ONTARIO--(Marketwire - July 28, 2009) - Shoreline Energy Fund ("Shoreline") is pleased to announce that it has entered into an agreement to acquire Hyperion Exploration Ltd. ("Hyperion"), a privately held Calgary based oil and gas exploration and production company with assets in northwest Alberta.

Under the terms of the agreement, Shoreline is offering Hyperion shareholders Fund Units (each full unit priced at $100) in exchange for all issued and outstanding Hyperion common shares, for total consideration of approximately C$3.8MM.

The proposed transaction has been unanimously approved by Hyperion's Board of Directors who recommend acceptance by Hyperion shareholders. Shoreline's offer is open for acceptance up to 5 pm, MST on Thursday July 30 2009.

If the proposed transaction is approved by Hyperion's shareholders, Hyperion management will remain with the company which will be wholly owned by the Fund. Following the closing of the transaction, Shoreline will nominate a new Board of Directors.

Following closing, Mr. Trevor Spagrud, current President of Hyperion will join the executive team of Lakeridge Energy Asset Management, the Technical Consultant to the Fund.

Hyperion currently holds undeveloped assets in the Peace River Arch area of northwest Alberta, and is acquiring an adjacent producing property with 25 to 30 oil drilling locations. Fully developed this asset has the potential to add between 500 and 700 barrels per day of production.

Shoreline's investment manager and an oil & gas technical consultant team collaborate to identify and fully evaluate opportunistic investments in the Canadian Oil and Gas Sector. A unique analytical process allows the Fund to better understand all investments "up from the well level", which increases the quality of the portfolio. The Technical Consultant Team working along side the investment manager provides the ability for the Fund to own oil & gas assets, with the benefits to the Fund coming from increased control over actual operations that could enhance future value as commodity prices recover.

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