Bonterra Oil & Gas Ltd.
TSX : BNE

July 02, 2009 18:25 ET

Bonterra Oil & Gas Ltd. and Cobalt Energy Ltd. Announce Completion of the Acquisition of Cobalt Energy Ltd.

CALGARY, ALBERTA--(Marketwire - July 2, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Bonterra Oil & Gas Ltd. ("Bonterra"); (www.bonterraenergy.com) (TSX:BNE) and Cobalt Energy Ltd. ("Cobalt") (TSX VENTURE:CB.A) (TSX VENTURE:CB.B) are pleased to announce that the arrangement under the Business Corporations Act (Alberta) involving Bonterra, Bonterra Energy Corp., and Cobalt and the shareholders of Cobalt (the "Arrangement") has been completed effective today.

Summary of the Cobalt Arrangement

Under the terms of the Arrangement, holders of class A common shares of Cobalt received 0.011875 of a Bonterra common share, and holders of class B common shares of Cobalt received 0.11875 of a Bonterra common share. As a result of the Arrangement, Cobalt became a wholly-owned subsidiary of Bonterra. An aggregate of 201,440 Bonterra common shares were issued to the holders of Cobalt shares.

Each of the former officers and directors of Cobalt has resigned and was replaced by a nominee of Bonterra. It is anticipated that the Cobalt class A common shares and class B common shares will be delisted from trading on the TSX Venture Exchange within three to four business days.

A detailed description of the Arrangement is contained in the Cobalt's management information circular dated June 1, 2009, a copy of which is available on SEDAR at www.sedar.com.

Advisory Regarding Forward-Looking Statements

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws with respect to the timing of the delisting of the Cobalt class A shares and class B shares from the TSX Venture Exchange. The forward-looking statements and information are based on certain key expectations and assumptions made by Bonterra and Cobalt, including expectations and assumptions concerning the timing of receipt of regulatory approvals. Although Bonterra and Cobalt believe that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information and there is no assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. These dates may change for a number of reasons, including, but not limited to, inability to secure necessary regulatory approvals in the time assumed. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release concerning these times. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements and information contained in this press release are made as of the date hereof and Bonterra and Cobalt undertake no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Neither the 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 news release.

Contact Information

  • Bonterra Oil & Gas Ltd.
    George F. Fink
    Chairman and Chief Executive Officer
    (403) 262-5307
    (403) 265-7488 (FAX)
    or
    Bonterra Oil & Gas Ltd.
    Garth E. Schultz
    Vice President, Finance and Chief Financial Officer
    (403) 262-5307
    (403) 265-7488 (FAX)
    or
    Bonterra Oil & Gas Ltd.
    Suite 901, 1015 - 4th Street S.W.
    Calgary Alberta T2R 1J4