Canadian Phoenix Resources Corp.
TSX VENTURE : CPH

Canadian Phoenix Resources Corp.

March 14, 2008 19:32 ET

Canadian Phoenix Resources Corp.: Corporate Update- Transactions With Serrano Energy Ltd.

CALGARY, ALBERTA--(Marketwire - March 14, 2008) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

CANADIAN PHOENIX RESOURCES CORP. ("Canadian Phoenix") (TSX VENTURE:CPH) announces that it has entered into a participation agreement with Serrano Energy Ltd. ("Serrano") pursuant to which Canadian Phoenix will participate in a three well exploration program on lands located in the Pembina area of Alberta and earn a 40% net working interest in such wells and associated lands by paying 63.5% of the costs to drill the wells and, if successful, 40% of the costs of completion and tie-in. The first two wells of this program will be drilled in March 2008 with the third to be drilled in the fall of 2008 weather permitting. Canadian Phoenix expects that its share of the costs for all three wells will be approximately $4.7 million. If the proposed transaction (the "Serrano Transaction") to acquire control of Serrano is completed and the expenditures made by Canadian Phoenix under the participation agreement qualify as Canadian Exploration Expenditures under the Income Tax Act, this participation will satisfy in part the obligation of Canadian Phoenix under the terms of the Serrano Transaction to farm-in on Serrano's properties. Please refer to Canadian Phoenix's news release dated February 4, 2008 for additional information regarding Serrano and the Serrano Transaction.

Canadian Phoenix also announces that it has provided a deposit of $1,000,000 to Serrano pending completion of the Serrano Transaction. The deposit is refundable to Canadian Phoenix in the event that the Serrano Transaction is not completed. Serrano has provided Canadian Phoenix with a security interest in its assets as security for the refund of the deposit in such event.

The Serrano Transaction is subject to a number of conditions, including but not limited to, TSX Venture Exchange acceptance and, if required pursuant to TSX Venture Exchange requirements, shareholder approval. It is anticipated that Canadian Phoenix will prepare a Filing Statement in accordance with the form prescribed by the TSXV Venture Exchange in respect of the proposed transaction. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that this transaction will be completed as proposed or at all.

Private Placement

Canadian Phoenix anticipates that the private placement of units first announced on February 4, 2008 will be completed on March 17, 2008.

Settlement with Brenda Stanger

Canadian Phoenix announces that as a part of the final stages of its 2007 restructuring it has reached an agreement with a company owned by Brenda Stanger, a former Chief Financial Officer of Arapahoe Energy Corporation (predecessor to Canadian Phoenix) in respect of her termination by Arapahoe. Canadian Phoenix will issue 1,000,000 Common Shares pursuant to this agreement.

Canadian Phoenix Resources Corp. is a publicly traded junior oil and gas exploration, development and production company with operations in Western Canada. Canadian Phoenix is pursuing a corporate strategy of being a consolidator of undervalued oil and gas assets located in the Western Canadian Sedimentary Basin. Canadian Phoenix's shares trade on the TSX Venture Exchange under the symbol "CPH".

ON BEHALF OF THE BOARD OF DIRECTORS OF CANADIAN PHOENIX RESOURCES CORP.

Robert J. Chenery, President & CEO

Forward-Looking Statements

This release may contain forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Forward-looking statements are not guarantees of future performance. Any forward-looking statements are made as of the date hereof and Canadian Phoenix does not undertake any obligation, except as required under applicable law, to publicly update or revise such statements to reflect new information, subsequent or otherwise.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Contact Information

  • Canadian Phoenix Resources Corp.
    Robert J. Chenery
    President & CEO
    (403) 920-0040
    (403) 920-0043 (FAX)