Bordeaux Energy Inc.

Bordeaux Energy Inc.

March 29, 2007 14:51 ET

Bordeaux Energy Inc. Signs Definitive Agreements Regarding the Aquitaine Maritime Exploration Permit

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 29, 2007) - Bordeaux Energy Inc. ("Bordeaux" or the "Company") (TSX VENTURE:BDO) is pleased to announce that it has entered into various definitive agreements (the "Definitive Agreements") relating to the Aquitaine Maritime Exploration Permit (the "Permit") located approximately 30km offshore of Bordeaux, France.

As announced on March 26, 2007, the Company acquired Signature Capital Corporation's ("Signature") rights under a farm-in agreement (the "Farm-in Agreement") among Signature, Vermilion REP SAS ("Vermilion") and Vermilion Exploration SAS. The Definitive Agreements, which supercede the Farm-in Agreement, contain detailed terms and conditions which are materially similar to the terms of the Farm-in Agreement relating to the Company's right to acquire, subject to French Government approval, the common shares of Vermilion AMAR Rep SAS ("AMAR"), a corporation incorporated under the laws of France; AMAR owns a 30% beneficial interest in the Permit. Until such time as the Company acquires the shares of AMAR, the Company is required to loan funds to AMAR to satisfy AMAR's obligations to Vermilion , in regard to AMAR's share of the well costs. Vermilion remains as operator of the Permit.

There are various conditions that must be met and approvals that must be obtained prior to the Company earning a 30% beneficial interest in the Permit: These conditions include: (a) a drilling rig being secured (b) approval from the French authorities to drill the well being obtained; (c) the drilling rig being moved to the location in time to allow the well to be completed by September 9th, 2007, which is the end of the drilling window in the area as determined by the French authorities; (d) earning having occurred as defined in the Definitive Agreements; (e) if earning occurs in 2007 then by February 8th, 2008 the Company must elect to convert the amount previously loaned to AMAR to fund well costs into common shares of AMAR, thereby acquiring all of the outstanding shares of AMAR; and (f) the French authorities approving the change of control of AMAR triggered by the conversion of the loan to AMAR.

Forward-Looking Statements:

Certain statements contained in this press release are not based on historical facts and may constitute forward-looking statements or forward-looking information within the meaning of applicable law. These statements appear in a number of different places herein and can be identified by words such as "will", "anticipates", "expects", "intends", or other comparable words. Forward-looking statements and information include statements regarding the Company's right to earn an interest in the Permit, the drilling of the Well on the Permit and other statements, and are subject to risk, uncertainties, and other factors, that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements or information. See the filings with the Canadian securities commissions for additional information on risks and uncertainties relating to the forward-looking statements and information. Many of these factors are beyond the control of the Company. Consequently, all forward-looking statements and information made herein, are qualified by this cautionary statement. The Company disclaims any intention or obligation to revise or update such statements or information except as may be required by law.

The TSX Venture Exchange (the "Exchange") has in no way passed upon the merits of the transactions discussed herein. The Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Bordeaux Energy Inc.
    Stephen Barley
    (604) 926-4300