Coral Hill Energy Ltd.

June 19, 2012 19:57 ET

Coral Hill Announces Receipt of Statement of Claim

CALGARY, ALBERTA--(Marketwire - June 19, 2012) - Coral Hill Energy Ltd. (the "Company") announces that a statement of claim has been filed in the Court of Queen's Bench of Alberta against, among others, the Company and its directors, by a former shareholder of Wave Energy Ltd. ("Wave") alleging in essence that the Company acquired certain assets in southern Saskatchewan, the Virginia Hills area of Alberta and the Swan Hills area of Alberta (collectively, the "Subject Assets") in an improper manner, directly or indirectly, from Wave.

The former shareholder of Wave claims to bring this action on his own behalf and on the behalf of the other former Wave shareholders and seeks, among other things, damages of $450 million, or in the alternative, a disgorgement of profits earned by the Company that have been derived from the Subject Assets and an order restraining Coral Hill from retaining and/or acquiring any petroleum and natural gas rights on the Subject Assets.

The Company and the directors believe that the claim and the plaintiff's claims against them are completely baseless and without merit and each of the Company and the directors intend to vigorously defend the same.

ADVISORY: This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the forgoing, this press release contains statements concerning the future defences of the claim and reliefs sought by the plaintiff in relation thereto. Although the Company believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The Company's and the directors' assessments of the basis of the claim may change, the relief sought in the claim may change and the basis of the claim may change. The forward looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Contact Information

  • Coral Hill Energy Ltd.
    Donald J. Rae
    President and Chief Executive Officer
    (403) 261-9991