Cordero Energy Inc.

Cordero Energy Inc.

June 18, 2008 17:35 ET

Cordero Energy Inc. Declares Conditional Special Cash Dividend and Outlines Special Settlement Rules

CALGARY, ALBERTA--(Marketwire - June 18, 2008) - Cordero Energy Inc. (TSX:COR) ("Cordero") announced today that it has declared a conditional special cash dividend of $0.45 per common share of Cordero in connection with the amendment by ENMAX Corporation and Cordero of their agreement dated February 18, 2008 respecting the ENMAX Acquisition Corp. ("ENMAX") offer (the "Offer") to acquire all issued and outstanding common shares of Cordero ("Cordero Shares"). The amendment of the Offer was previously announced by Cordero on June 13, 2008 and the Offer expires at 4:30 p.m. (Calgary time) on June 27, 2008. The payment of the dividend is conditional on ENMAX giving notice that it will take up Cordero Shares under the Offer (the "Condition"). Holders of Cordero Shares of record at 4:29 p.m. (Calgary time) on June 27, 2008 will be entitled to receive the dividend if the Condition is satisfied. The dividend is payable three business days following the date that ENMAX gives notice to the depository for the Offer that it will take up Cordero Shares under the Offer.

Upon ENMAX meeting the Condition:

- all Cordero shareholders of record as at 4:29 p.m.(Calgary time) on the expiry date of the Offer will receive a $0.45 per share cash dividend payable from Cordero; and

- tendering Cordero shareholders will receive $4.75 cash per share from ENMAX.

As a result, Cordero shareholders may receive a total of $5.20 in cash: $4.75 by tendering to the Offer, together with receipt of the $0.45 dividend.

In order to facilitate the payment of the dividend, the Toronto Stock Exchange ("TSX") will implement mandatory special settlement rules to accelerate settlement for the trading of Cordero Shares through the TSX. Settlement will occur as follows:

- trades on June 25, 2008 will be for cash settlement on June 26, 2008;

- trades on June 26, 2008 will be for cash settlement next day, being June 27, 2008; and

- trades on June 27, 2008 will be for cash settlement same day, being June 27, 2008.

Accordingly, Cordero Shares will not trade ex-dividend until after June 27, 2008. Regular three-day settlement for trading in Cordero Shares will resume at the opening on Monday, June 30, 2008 and the Cordero Shares will then be trading ex-dividend, provided the Condition is satisfied.

The information contained in these pages contains forward-looking statements including expectations of future events and the payment of a conditional cash dividend by Cordero. The reader is cautioned that assumptions used in the preparation of such statements, although considered reasonable by Cordero at the time of preparation, may prove to be incorrect. In addition, the conditions to payment of the dividend may not be satisfied. No assurance can be given that the events anticipated by the forward-looking statements will occur. Cordero undertakes no obligation to update or revise any forward-looking statements except as required by applicable securities laws.

Cordero is an independent exploration and development company pursuing conventional oil and natural gas production and reserves as well as coalbed methane development in western Canada. Cordero is based in Calgary, Alberta.

Contact Information

  • Cordero Energy Inc.
    David Elgie
    President and Chief Executive Officer
    (403) 265-7006
    Cordero Energy Inc.
    Dean Setoguchi
    Vice President and Chief Financial Officer
    (403) 265-7006