Spry Energy Ltd.

January 15, 2008 20:01 ET

Spry Energy Ltd. Announces Completion of Acquisition of Private Company Golden Eagle Energy Inc.

CALGARY, ALBERTA--(Marketwire - Jan. 15, 2008) - Spry Energy Ltd. ("Spry") announces that it has completed its previously announced acquisition of Golden Eagle Energy Inc. ("Golden Eagle") by way of a plan of arrangement (the "Arrangement") under the provisions of the Business Corporations Act (Alberta). Pursuant to the Arrangement, Spry exchanged 0.1406 of a common share of Spry for each Golden Eagle common share, or $0.745 in cash for each Golden Eagle common share, subject to the maximum amount of cash totaling $3,725,000. As a result, Spry issued approximately 1.85 million common shares.

A special meeting of shareholder of Golden Eagle was held January 14, 2008 where such shareholders were asked to approve the Arrangement. Over 95% of the votes cast by the Golden Eagle shareholders present at the meeting were voted in favour of the resolution. Following the meeting, the Arrangement was also approved by the Alberta Court of Queen's Bench. Upon successful completion of the Arrangement, Mr. Daryl Gilbert, formerly the Chairman of the Board of Golden Eagle, was appointed as a director of Spry.

Immediately prior to completion of the Arrangement, Golden Eagle had production of approximately 240 boes per day, a working capital surplus of approximately $1.0 million, no debt, 34,000 net acres of undeveloped land and $30 million in tax pools. Spry operates a joint property with Golden Eagle in Utikuma, Alberta and has several oil properties in southeast Saskatchewan in close proximity to Golden Eagle properties. Upon successful completion of this transaction, Spry's production rate is approximately 1,440 boes per day.

Cautionary Statements

BOE, as used in this document, may be misleading, particularly if used in isolation. A BOE conversion ratio for natural gas of 6 Mcf:1 bbl has been used, which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Certain information set forth in this press release, including managements' assessment of the future plans and operations of Spry and the benefits of the Arrangement, contains forward looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the control of Spry, including 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. The actual results, performance or achievement of Spry, as a combined entity 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 that Spry will derive therefrom. Spry disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • Spry Energy Ltd.
    Mr. Kenneth Bowie, P.Eng. MBA
    President and CEO
    (403) 265-7770 ext. 230