Anterra Corporation

Anterra Corporation

April 11, 2007 08:00 ET

Anterra and Resolve Mail Information Circular and Provide Q1/07 Operational Update

CALGARY, ALBERT--(CCNMatthews - April 11, 2007) - Anterra Corporation ("Anterra")(TSX VENTURE:ATR) and Resolve Energy Inc. ("Resolve") (or jointly, the "Companies") are pleased to advise shareholders that the Information Circular and Proxy Statement in respect of the proposed amalgamation between the companies (the "Amalgamation") and other matters was recently mailed to both sets of shareholders. At the shareholder meetings, which are scheduled for 3 p.m. (Resolve) and 3:30 p.m. (Anterra) on April 26, 2007 at the Bow Valley Club in Calgary, shareholders will consider the Amalgamation of Anterra and Resolve and the stock option plan for the amalgamated company. At the conclusion of the Anterra meeting, management will also provide shareholders with a corporate update and presentation on business plans for the balance of 2007. Provided all requisite approvals are obtained, the Amalgamation is expected to become effective on or about May 1, 2007. The Joint Information Circular was filed on SEDAR ( on March 30, 2007 and is available for review.

The boards of directors of both companies have unanimously approved the Amalgamation and have recommended that both sets of shareholders vote in favor of the transaction. Holders of approximately 35% of the outstanding shares of Anterra and 50% of the outstanding shares of Resolve have entered into lock-up agreements whereby such persons have agreed to vote their shares in favor of the Amalgamation. Acumen Capital Partners have provided the board of directors of Resolve with an opinion that the Amalgamation is fair from a financial point of view to the Resolve shareholders and Haywood Securities Inc. has provided the board of directors of Anterra with an opinion that the Amalgamation is fair from a financial point of view, to the Anterra shareholders.


Since the announcement of the business combination of Anterra and Resolve, significant field work has been undertaken on properties in which both Companies have an interest and the Companies wish to provide shareholders with an update on these exploration and development activities for the first quarter of 2007.


During the quarter, the Companies acquired additional lands at Judy Creek and now jointly own or have the right to earn an interest in seven and one quarter sections or 4,640 acres of land covering the Swan Hills Devonian reef prospect. Also during the quarter the Companies completed a $1 million 3-D seismic program and the data collected is presently being processed. Once the data has been interpreted and following spring breakup, the Companies intend to re-enter an abandoned well located at LSD 5-29-62-11W5M and re-complete the well in the Swan Hills formation at a cost to the Companies of approximately $400,000. Data from the seismic program will also provide management with a location for a 2,600 meter Swan Hills exploration well which will be drilled during the second or third quarters of 2007. The Companies jointly hold a one hundred (100%) percent interest in the Judy Creek project.


During the quarter, the Companies applied for and received approval for the ERP (Emergency Response Plan) for the McLeod well re-entry project at Anterra et al LSD 14-20-55-14W5M. The Companies have applied for a well license to re-enter the well and deepen it from 2,400 meters to 3,200 meters to test the Swan Hills formation, at a cost to the Companies of approximately $525,000. Due to the sour nature of the target formation, representatives of the Companies are presently meeting with and notifying neighbors of the deepening project and seeking their support for the project. This notification process should be complete within the next 30 days and approvals from the regulators are then expected by early summer, with the re-entry project now scheduled to proceed during July, 2007. Subject to a successful test, expected for early August, the Companies have reached agreement with a local sour gas plant operator to proceed with a six mile pipeline tie-in and to deliver as much as 25 mmcfd of gas from a successful discovery well to the plant for processing. The Companies hold a fifty two and one half (52.5%) percent interest in the McLeod project.


During the quarter, the Companies applied to Saskatchewan regulators for an off target spacing approval to drill a new well at LSD 1-18-4-20W3M and this approval is expected by mid April, 2007. Following spring break-up, the LSD 1-18-4-20W3M well will be drilled offsetting a 1959 well which tested oil from the Shaunavon formation. The Companies have reviewed electric logs and examined core samples from the 1959 well and management has a high level of confidence that the new well will encounter the same oil saturated sands. The Companies were also successful in acquiring a further 480 acres of land at a recent crown land sale for less than $25,000. There are three development well locations offsetting the LSD 1-18-4-20W3M location (which are the subject of a down spacing application) and one re-entry on the recently acquired lands, with these activities all scheduled for the summer and fall of 2007. The Companies jointly hold a one hundred (100%) percent interest in the Frontier project.


Four Basal Belly River development wells are planned for Breton during 2007. An approval to down space from 80 acres to 40 acres in the south end of the Basal Belly River pool is before the regulators and, following approval of this application and subject to weather conditions, two development wells are planned to be drilled by the end of the second quarter at a cost to Anterra of approximately $1.5 million including completion and tie-in. Production at Breton is presently 245 boepd and management has plans to double this production over the coming 24 months through its proposed development drilling and water flood program. Gas production is presently restricted by infrastructure and with future gas discoveries, pipelines and compression will need to be expanded. In the south end of the Breton Basal Belly River pool, reservoir pressure is low and an application has been made to convert a suspended oil producer into a water injection well. Management believes that increased reservoir pressure in the Basal Belly River sands will positively impact production levels from existing and planned oil producers in the south end of the field. Anterra holds a one hundred (100%) working interest in the Breton property.


Anterra advises that oil and gas production has averaged an estimated 250 boepd during the first quarter of 2007. Facility constraints are restricting gas production from the recently drilled LSD11-23-47-3W4M gas well to 450 mcfd and more compression is needed for the well to produce at greater levels.

Anterra is an emerging energy company with a focus on the exploration and development of oil and gas reserves and the exploitation of associated fee-based projects in western Canada. Anterra is a public Canadian company listed on the TSX Venture Exchange under the symbol ATR. More information about Anterra is available on the internet at

Resolve Energy is a newly formed emerging junior oil and gas company focused on the exploration, development and exploitation of oil and natural gas reserves in western Canada. More information about Resolve is available on the internet at


This news release contains forward looking information related to the planned drilling program, production and operating costs. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to, risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates in relation to reserves, production and expenses; and health, safety and environmental risks). Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in the company's securities should not place undue reliance on these forward-looking statements.

The term BOE or BOEs may be misleading, particularly if used in isolation. A BOE (barrel of oil equivalent) conversion rate of 6 Mcf per one (1) BOE is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Anterra Corporation
TSXV Trading Symbol: ATR
27,842,833 Common shares

Resolve Energy Inc.
TSXV Trading Symbols: RSE.A, RSE.B
6,343,000 Class A Shares
380,538 Class B Shares

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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