Spartan Exploration Ltd.
TSX : SPE

Spartan Exploration Ltd.
Aztek Energy Ltd.
TSX VENTURE : AZT.H

January 18, 2010 14:46 ET

Spartan Exploration Ltd. Announces Completion of Acquisition of Aztek Energy Ltd. and Listing of Spartan Shares on the Toronto Stock Exchange

CALGARY, ALBERTA--(Marketwire - Jan. 18, 2010) - Spartan Exploration Ltd. ("Spartan") (TSX:SPE) is pleased to announce that the acquisition of all of the issued and outstanding common shares ("Aztek Shares") of Aztek Energy Ltd. (TSX VENTURE:AZT.H) ("Aztek") on the basis of 0.0805 of a common share of Spartan (a "Spartan Share") for each 1.0 Aztek Share by way of a plan of arrangement (the "Arrangement") has been successfully completed. The Spartan Shares will commence trading on the Toronto Stock Exchange on or about January 21, 2010, under the trading symbol "SPE". In connection with the completion of the Arrangement, the Aztek Shares shall be delisted from the TSX Venture Exchange. GMP Securities L.P. and Clarus Securities Inc. acted as strategic advisors to Spartan with respect to the Arrangement.

The net proceeds of the previously announced bought deal private placement (the "Brokered Financing") of subscription receipts of approximately $14.6 million and the gross proceeds of the non-brokered private placement of subscription receipts of approximately $600,000 (collectively, the "Subscription Receipts") of Aztek (collectively, the "Offerings") have been released to Spartan in connection with the completion of the Arrangement. The Brokered Financing was completed through a syndicate of underwriters co-led by GMP Securities L.P. and Clarus Securities Inc., and including CIBC World Markets Inc., Research Capital Corporation, Macquarie Capital Markets Canada Ltd., FirstEnergy Capital Corp. and Captus Partners Ltd.

Each Subscription Receipt was deemed to be exercised immediately prior to the effective time of the Arrangement, without the payment of any additional consideration and without any further action on the part of the holder thereof, for one Aztek Share, which Aztek Shares were exchanged under the Arrangement for Spartan Shares on the same basis as all other Aztek Shares, being 0.0805 of a Spartan Share for each Aztek Share. The net proceeds of the Offerings will be used by Spartan to fund ongoing exploration and development activities and for general corporate purposes.

After the completion of the Arrangement, Spartan has 28,092,766 Spartan Shares, options to acquire 1,848,878 Spartan Shares and performance warrants to acquire 4,848,264 Spartan Shares issued and outstanding.

About Spartan

Spartan, a public company based in Calgary, Alberta, has been engaged in the business of acquiring crude oil and natural gas properties and exploring for, developing and producing oil and natural gas in western Canada since mid 2008. Spartan is uniquely positioned with a significant position in each of the three leading oil resource plays in western Canada, being the Bakken light oil resource play in southeast Saskatchewan, the Lower Shaunavon medium gravity oil resource play in southwest Saskatchewan and the Cardium light oil play in central Alberta.

READER ADVISORY

Statements in this joint press release contain forward-looking information. Readers are cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Spartan. These risks include, but are not limited to; the risks associated with the oil and gas industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to; operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses and access to capital. The risks outlined above should not be construed as exhaustive. The reader is cautioned not to place undue reliance on this forward-looking information. Spartan does not undertake any obligation to update or revise any forward-looking statements except as expressly required by applicable securities laws.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to United States Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

The Toronto Stock Exchange has not reviewed, nor does it accept responsibility for the adequacy or accuracy of this release.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Spartan Exploration Ltd.
    Richard F. McHardy
    President & CEO
    (403) 294-9196
    (403) 294-9126 (FAX)
    or
    Spartan Exploration Ltd.
    1000, 606 - 4th Street SW
    Calgary, Alberta