Chirripo Resources Inc.

Chirripo Resources Inc.

June 07, 2005 13:32 ET

Chirripo Resources Inc.: Strategic Alternatives

CALGARY, ALBERTA--(CCNMatthews - June 7, 2005) - Chirripo Resources Inc. (TSX VENTURE:CHO) ("Chirripo") announces that its board of directors has authorized management to initiate the review of strategic alternatives to maximize shareholder value. The board of directors has concluded that the current market price of Chirripo's shares does not reflect the underlying value of Chirripo's assets and future drilling prospects. To facilitate the process of maximizing shareholder value and to assist Chirripo in identifying and evaluating all available strategic alternatives the board of directors of Chirripo has retained Sayer Securities Limited as its financial advisor.

Chirripo is an Alberta based public, junior oil and gas company, engaged in the exploration for and the development of light oil and natural gas reserves in the Peace River Arch and the Keg River Basins of Northern Alberta. Chirripo's May production was an estimated 340 barrels of oil equivalent (boe) per day consisting of 1,200 mcf per day of natural gas and 140 barrels per day of oil and natural gas liquids. Chirripo anticipates another 80 boe per day of natural gas production will be added to its production base in June as the new well at Bilawchuk comes on-stream. In addition, Chirripo has approximately 29,000 net acres of undeveloped land with seismically defined drilling opportunities to significantly add future reserves and production.

Shares outstanding: 11,248,768

This news release has been neither approved nor disapproved by the TSX Venture Exchange.

Contact Information

  • Chirripo Resources Inc.
    Issa Abu-Zahra
    President and Chief Executive Officer
    (403) 261-5858
    Chirripo Resources Inc.
    David A. Dakers
    Corporate Secretary and Chief Financial Officer
    (403) 261-5858