Vault Energy Trust

Vault Energy Trust

June 02, 2005 12:04 ET

Chamaelo Energy Inc. Announces ExploreCo Net Asset Value

CALGARY, ALBERTA--(CCNMatthews - June 2, 2005) - Chamaelo Energy Inc. (TSX:CLO) ("Chamaelo") is pleased to announce it has completed its Net Asset Value ("NAV") calculation for ExploreCo on a proforma basis as tabled below.

Chamaelo disclosed in its Information Circular dated May 20, 2005 (the "Information Circular") that it was having its independent engineering firm ("GLJ") complete an independent valuation of the oil and gas properties of ExploreCo (the "GLJ Report").

The GLJ Report was done in conjunction with Chamaelo's proposed Plan of Arrangement (the "Arrangement") and its Information Circular dated May 20, 2005, whereby Chamaelo is proposing to split into two new entities - Vault Energy Trust and Chamaelo Exploration Ltd. ("ExploreCo"). The results of this GLJ Report and the calculation of the net asset value of ExploreCo are below. Further details of the GLJ Report will be available at

Assets & Liabilities Note Boe Value $ (000's)
Reserves - 10% P+P (1) 3,577,000 35,568
Undeveloped Land (2) 5,923
Debt 0
Total Net Asset
Value (NAV) 41,521

Prior to 5:1 Post 5:1
consolidation consolidation
NAV as above 41,521 41,521
Proforma Basic
Shares outstanding (3) 75,624 15,125
NAV per Basic Share $0.55 $2.75

(1) Based on GLJ Report effective June 1, 2005.
(2) Land value estimated by Company at $100 per acre
(3) Excludes 3.7 million pre-consolidated warrants at $0.62
per share and is prior to proposed private placement
(4) All figures are Canadian dollars unless otherwise noted

In conjunction with the Arrangement, a private placement has been proposed to be issued to primarily officers, directors and employees of ExploreCo to a maximum of $10.0 million. The placement is comprised of a share at 112% of NAV ($3.08 per ExploreCo share) and a warrant at 200% of NAV (exerciseable at $5.50 per ExploreCo share). Participants will be subject to certain vesting and trade restrictions up to 36 months.

Rob Zakresky, President of ExploreCo states: "We are very pleased that we have been able to attract top management, technical and financial personnel in a very competitive environment because of the dynamics of our entity. We are, however, even more pleased that these individuals are essentially locked-up for 3 years due to the significant amounts of capital invested in the private placement and the 36 month vesting period. As President, I am also looking forward to working with and welcome the new Board of Directors of ExploreCo - Daryl Gilbert, Don Cowie, and Larry Moeller."

Forward Looking Statements

This Press Release may contain forward-looking information that involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. For this purpose, any statements herein that are not statements of historical fact may be deemed to be forward-looking statements. Such risks and uncertainties include, but are not limited to: risks associated with the oil and gas industry (e.g. - operational risks in exploration, development and production; changes and/or delays in the development of capital assets; uncertainty of reserve estimates; uncertainty of estimates and projections relating to production and costs; commodity price fluctuations; environmental risks; and industry competition).

Chamaelo is a publicly held oil and gas company headquartered in Calgary, Alberta, Canada that trades under the symbol "CLO" on the Toronto Stock Exchange.

Contact Information

  • Chamaelo Energy Inc.
    Robert J. Zakresky
    (403) 232-8575 (ext. 226)
    Chamaelo Energy Inc.
    Greg Fisher
    Vice President Finance
    (403) 232-8575 (ext. 229)
    Chamaelo Energy Inc.
    Robert T. Jepson
    Executive Vice President
    (403) 232-8575 (ext. 225)
    Chamaelo Energy Inc.
    700, 639 -5th Ave SW
    Calgary, Alberta T2P 0M9
    (403) 232-8575
    (403) 264-0061 (FAX)