Arctos Petroleum Corp.
TSX VENTURE : APO

May 04, 2007 22:05 ET

Arctos Announces Major Debt Re-Structuring

CALGARY, ALBERTA--(CCNMatthews - May 4, 2007) - ARCTOS PETROLEUM CORP. ("Arctos" or the "Company") (TSX VENTURE:APO) today announced that it has successfully reached settlement agreements with eleven creditors of the Company to re-structure $4,573,820 in outstanding net debt as at April 30, 2007. In aggregate, Arctos will settle all outstanding amounts through the payment of $1,218,107 in cash and the issuance of 31,846,265 common shares of the Company. One creditor, with debt owed of $2,481,018 as at April 30, 2007, will be settled in full ($2,481,018 plus any interest accrued between April 30 and May 4, 2007) by the payment of a total of $1,169,357 in cash and the issuance of 11,405,745 common shares of the Company. Ten creditors, with net debt owed of $2,092,802, will be settled in full by the payment of a total of $48,750 in cash and the issuance of 20,440,520 common shares of the Company. These transactions are all subject to TSX Exchange approval. Following the completion of this debt settlement, Arctos will have 91,876,504 common shares issued and outstanding.

In June 2006, Arctos announced that new Management had been appointed to initiate the re-structuring process and to provide for future direction of the Company. With the settlement of this significant and onerous debt burden, the Company will be well positioned to move forward with an active business plan that will be focused on acquiring oil and gas assets together with a selective drilling program.

Arctos is an emerging junior oil and gas company with exploration, development, and production programs in Alberta and Saskatchewan.

ARCTOS PETROLEUM CORP.

William (Bill) S. Ward, President & CEO

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

Contact Information

  • Arctos Petroleum Corp.
    William (Bill) S. Ward
    President & CEO
    (403) 531-1711
    Email: bward@arctos.ca