Anglo Canadian Oil Corp.: Tallgrass Energy Corp. Closes Previously Announced Acquisition of Producing Cardium Light Oil Assets in Central Alberta

CALGARY, ALBERTA--(Marketwire - Aug. 9, 2012) -

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This News Release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities issued pursuant to the plan of arrangement and financing described herein have not been and will not be registered under the United States Securities Act of 1933 and may not be offered or sold in the United States except in transactions exempt from such registration.

Anglo Canadian Oil Corp. ("Anglo") (TSX VENTURE:ACG) and Tallgrass Energy Corp., ("Tallgrass" or the "Company") are pleased to announce that Tallgrass has successfully completed its previously announced acquisition of certain producing Cardium light oil assets in central Alberta. This acquisition adds approximately 450 boe/d to its production base for total consideration of $17 million.

Key attributes of the acquisition include:

• Cardium light oil production of approximately 450 boe/d (73% light oil and NGLs);
• almost 30 net sections of land, of which most are operated;
• ownership of 9 km² of 3-D and 102 km of 2-D seismic and access, to the end of January 2013, to an additional approximately 21km² of 3-D;
• an independent engineering report stating a 2P reserves value of $27.5 million (2.1 mmboe); and
• 10 sections of undeveloped Cardium lands having 40 potential net low-risk drilling locations.

Tallgrass is also pleased to report that it is currently producing about 600 boe/d (72% oil and NGLs). Tallgrass is pleased with its oil weighted, long reserve life assets and significant un-booked upside potential eg. 40 potential Cardium locations. The acquisition was funded through its revolving credit facility, a bridge loan in the amount of $6 million and the previously announced $2 million loan from Anglo. Tallgrass has previously announced its intent to undertake a $20 million equity financing, the funds from which will be used to strengthen its balance sheet and execute its Cardium strategy.

In connection with the previously announced (July 4, 2012) strategic business combination between Tallgrass and Anglo (the "Transaction"), an information circular is anticipated to be mailed to the shareholders of both companies in late August 2012 and a meeting of such shareholders is expected to be held in late September 2012 or October 2012, with closing of the Transaction expected to take place shortly thereafter.

About Anglo: Anglo is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum. Anglo owns rights to 173,776 net acres (272 net sections) of potential Nordegg oil bearing lands in West Central Alberta as well as 90,658 acres (142 sections) of potential oil bearing lands in Central Alberta, with multi-stacked formation potential. Anglo has identified 30 potential drilling locations in the Nordegg. In addition, Anglo holds rights to 17,481 acres (27 sections) of potential Bakken and Mannville oil bearing lands in Southwest Saskatchewan. In the vast majority of these lands, the Corporation holds a 100% working interest. There are currently issued and outstanding 201,996,000 Common Shares which are listed on the TSX-V under the trading symbol "ACG".

About Tallgrass: Tallgrass is a private junior oil and gas company. Its primary exploration and production focus has been in east central Alberta where it has over 10,880 net acres (17 sections) of land and first half 2012 production of approximately 150 boepd (70% oil + NGLs). The above referenced Cardium acquisition in central Alberta adds approximately 450 boepd (73% light oil + NGLs).There are currently issued and outstanding 9,294,417 Common Shares.

Note Regarding Forward-Looking Statements and Other Advisories

This press release contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws relating to the Company's plans and other aspects of Anglo and Tallgrass' anticipated future operations, management focus, strategies, financial, operating and production results and business opportunities, expected production, cash flow, operating netbacks, debt ratios, our capital expenditure program, drilling and development plans and the timing thereof. In addition, and without limiting the generality of the forgoing, this press release contains forward looking information regarding the proposed Transactions including the impact of the Letter Agreement on Anglo and Tallgrass and Anglo and Tallgrass' results and development plans, the timing and anticipated closing date for the Transactions. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future.

The forward-looking information is based on certain key expectations and assumptions made by Anglo and Tallgrass' management, including expectations and assumptions concerning prevailing commodity prices, exchange rates, interest rates, applicable royalty rates and tax laws; future production rates and estimates of operating costs; performance of existing and future wells; reserve and resource volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labour and services; the impact of increasing competition; ability to market oil and natural gas successfully, Anglo and Tallgrass' ability to access capital and obtaining all necessary Anglo shareholder and Tallgrass shareholder and warrantholder approvals and the approvals of regulatory authorities, including the TSX-V.

Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Anglo and Tallgrass can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that the Company will derive therefrom. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide shareholders with a more complete perspective on Anglo and Tallgrass' future operations and such information may not be appropriate for other purposes.

Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect our operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).

These forward-looking statements are made as of the date of this press release and Anglo and Tallgrass disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Note: "BOE" means barrel of oil equivalent on the basis of 6 mcf of natural gas to 1 bbl of oil. BOE's may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.