Anterra Energy Inc.

Anterra Energy Inc.

September 14, 2009 08:30 ET

Anterra Announces Investment Agreement With Alliance Success Holding Group

CALGARY, ALBERTA--(Marketwire - Sept. 14, 2009) - Anterra Energy Inc. ("Anterra" or the "Company") (TSX VENTURE:AE.A) (TSX VENTURE:AE.B) today announced that it has signed an Investment Agreement (the "Agreement") with Alliance Success Holding Group Limited ("Alliance") under which Alliance will invest, subject to the satisfaction of certain conditions, up to $15 million in the Company (the "Transaction"). Under the terms of the Agreement, on October 6, 2009, Alliance will purchase 40,000,000 Class A Shares of Anterra for $0.075 per share for gross proceeds of $3.0 million (the "First Investment") and on or before December 31, 2009, Alliance shall purchase a further 150,000,000 Class A Shares of Anterra for $0.08 per share for gross proceeds of $12 million (the "Second Investment") for a total investment of $15 million. The Transaction is subject to a number of conditions including regulatory approval, the finalization of due diligence and minority approval of the Anterra shareholders. The Agreement sets out the definitive terms and conditions of the Transaction, including the condition that on or before September 30, 2009, Alliance shall place a $500,000 deposit in trust with its Canadian legal counsel subject to the closing of the First Investment. Alliance also has the right, subject to regulatory approvals, to appoint up to three directors to the board of directors of Anterra which shall be comprised of seven directors, upon completion of the First Investment. The Company has also agreed to pay to Research Capital Inc. and ISTDC Canada Inc. of Regina, Saskatchewan, Finder's Fees of 4.4% cash of the total investment amount and 2,533,333 broker warrants. The warrants have a term of two years and are exercisable into Common Shares of Anterra at a price of $0.15 per share. Alliance is incorporated in Hong Kong and is an investment holding company focused on developing resource assets including minerals, oil and gas.

A special meeting of shareholders of Anterra has been scheduled for October 6, 2009 at 10:00 a.m. (Calgary time) at the offices of Macleod Dixon, to approve the Transaction and the resulting change of control. The record date for the meeting has been set at September 4, 2009 and the Information Circular for the meeting was mailed on Friday, September 11, 2009.

The Transaction reflects the interest in Anterra's Lower Shaunavon resource project in southwest Saskatchewan and the long term strategic value of this asset which the Company believes has been substantially undervalued by the market. Anterra's management chose Alliance as a financial partner over other strategic alternatives due to Alliance's financial strength and their ability to source additional capital from Asia which will be needed to accelerate the development of the Company's Lower Shaunavon and Bakken projects. The Calgary-based company said that drilling on its 10,000 acre Lower Shaunavon project, which it operates, will commence in the fourth quarter of 2009 with development continuing through 2010. The Company also plans to commence exploratory drilling on its Saskatchewan Bakken lands in 2010.

The Company also advises that it has entered into a Forbearance Agreement (the "Forbearance Agreement") with its principal lender (the "Bank"). Under the terms of the Forbearance Agreement, the Company agreed to sell, refinance or re-capitalize its operations by October 15, 2009 with the intention that all long-term defaults will be eliminated by this date and the loan shall either be repaid in full or the Company shall be re-financed. Also, under the terms of the Forbearance Agreement, the Company agreed to meet certain interim deadlines to demonstrate its progress toward eliminating long-term defaults within stated time frames. In addition, effective August 1, 2009, the Company agreed to a reduction of its revolving demand loan facility to $5,250,000 and the Company's non-revolving acquisition and development facility has been cancelled. The interest rate on the Company's operating loan has been increased to prime plus 2% and a forbearance fee of $100,000 will be paid to the Bank at the end of the forbearance period.

About Anterra Energy

Anterra Energy is an independent exploration, development and production company with an emerging focus on the use of advanced exploration technologies including 3-D imaging, horizontal drilling and multi-stage completions to systematically develop its portfolio of conventional and non-conventional oil and gas projects. Complementing this strong exploitation and development focus, the Company owns and operates fee-based midstream facilities in western Canada. Anterra is a public Canadian company listed on the TSXV under the symbols AE.A and AE.B. More information about Anterra is available on the Company's website at

Reader Advisory:

This news release contains certain forward-looking statements, which include assumptions with respect to (i) exploration strategy; (ii) future capital expenditures; and (iii) financing strategy. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, the ability of the Company to reach settlement with certain of its creditors, risks associated with oil and natural gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, and stock market volatility. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits, including the amount of proceeds, the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

46,957,892 Class A Shares

753,014 Class B Shares

Neither 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.

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