Bronco Energy Ltd.
TSX : BCF

Bronco Energy Ltd.

October 07, 2010 16:03 ET

Bronco Announces Mailing of Shareholder Materials

CALGARY, ALBERTA--(Marketwire - Oct. 7, 2010) -

THIS PRESS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH US NEWSWIRE SERVICES

Bronco Energy Ltd. ("Bronco") (TSX:BCF) is pleased to announce the mailing of its Information Circular and Proxy Statement ("Information Circular") with respect to a special meeting of the holders ("Securityholders") of common shares ("Shares") of Bronco, warrants ("Warrants") to acquire Bronco Shares and 6.0% Convertible Secured Subordinated Debentures ("Debentures") of Bronco. The Information Circular and related meeting material is also be available for viewing under Bronco's profile on SEDAR at www.sedar.com and on its website at www.broncoenergy.ca.

Bronco has obtained an Interim Order of the Court of Queen's Bench of Alberta providing for, among other things, the holding of a meeting of the Securityholders, which will be held in Room 104, North Building, Telus Convention Centre, 120 – 9th Avenue S.E., Calgary, Alberta on November 3, 2010 at 8:00 a.m. (Calgary time), to approve the previously announced arrangement under the Business Corporations Act (Alberta) (the "Arrangement") involving Bronco, Legacy Oil + Gas Inc. ("Legacy") and the Securityholders.

Pursuant to the Arrangement, Legacy will acquire all of the issued and outstanding Shares and the holders of the Shares will receive 0.0182 of a common share of Legacy for each Share held. Also pursuant to the Arrangement, Legacy will acquire all of the Debentures. The holders of the Debentures will receive a cash payment of $1,100.00 per $1,000.00 principal amount of Debentures, which represents a 1% premium to face value plus interest that would have been payable to maturity. The Warrants will be cancelled for no consideration pursuant to the Arrangement.

As closing of the Arrangement will occur subsequent to the next scheduled Debenture interest payment on October 31, 2010, Bronco intends to exercise its option to make such payment by issuing Shares, which Shares will be eligible to vote at the Securityholder meeting and will be exchanged into shares of Legacy pursuant to the Arrangement in the same manner as currently outstanding Shares.

Forward-Looking Statements

Certain statements contained in this news release concerning Bronco, including: its ability to close the Arrangement and satisfaction of the conditions thereto, constitute forward-looking statements. Although Bronco believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. In making the forward-looking statements, Bronco has made assumptions regarding, among other things: its ability to close the Arrangement and satisfaction of the conditions thereto. Actual events may differ materially from those expressed in the forward-looking statements if such assumptions prove to be incorrect. The forward-looking statements contained in this document are expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking statements to conform such statement to actual results or to changes in our expectations except as otherwise required by applicable securities legislation.

Contact Information

  • Bronco Energy Ltd.
    Peter J. Pelensky
    President and CEO
    (403) 699-8383
    (403) 693-0038 (FAX)
    or
    Bronco Energy Ltd.
    Paul E. Belliveau
    VP Finance and CFO
    (403) 699-8383
    (403) 693-0038 (FAX)
    www.broncoenergy.ca