Alston Energy Inc.

Alston Energy Inc.

July 18, 2012 09:31 ET

Crescent Point Asset Acquisition Completed, Amalgamation with CanRock Energy Corp. Completed, New Board of Directors and Management, New Loan Facility

CALGARY, ALBERTA--(Marketwire - July 18, 2012) - Alston Energy Inc. (TSX VENTURE:ALO) ("Alston") is pleased to announce an update on the status of the following previously announced matters:

  • Alston has completed the acquisition from Crescent Point Resources Partnership of certain natural gas properties near Alexander, Alberta, which include approximately 225 boe/d of primarily natural gas production, in consideration of the issuance to Crescent Point Energy Corp. ("Crescent Point") of 21,666,667 units (the "Units") of Alston at an effective issue price of $0.15 per Unit. Each Unit is comprised of one common share (a "Common Share") of Alston and one-half of one common share purchase warrant of Alston (each whole warrant, a "Warrant"). Each Warrant entitles Crescent Point to acquire one Common Share of Alston at a price of $0.20 per Common Share within 18 months from July 17, 2012. As a result of the acquisition of the Units, Crescent Point now owns or controls 21,666,667 Common Shares of Alston, representing approximately 13 percent of the issued and outstanding Common Shares of Alston, and 10,833.334 Warrants that, if exercised, would represent approximately an additional seven percent of the presently issued and outstanding Common Shares of Alston.
  • Alston has completed a vertical amalgamation with CanRock Energy Corp. ("CanRock") under the name of Alston Energy Inc. following the court approved plan of arrangement and the filing of articles of arrangement pursuant to which Alston acquired all of the outstanding common shares of CanRock (the "Arrangement").
  • In connection with the closing of the Arrangement, Alston's new board of directors now comprises Don Umbach, Bruce Eckert, Wayne Babcock, Jack Donhuysen, Dennis Nerland and Ryan Dunfield, and Alston's management team now comprises Don Umbach as President, Chief Executive Officer and Corporate Secretary, Bruce Eckert as Chief Operating Officer, Patricia Taguchi as Chief Financial Officer, Don Martin as Vice President, Exploration, and Troy Winsor as Vice President, Business Development.

Alston is also pleased to announce that it has entered into a revolving production loan facility in the amount of Cdn. $9,000,000 and a revolving acquisition loan facility of Cdn. $2,500,000 with Alberta Treasury Branches.

This press release is not an offer of the securities for sale in the United States. The securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from registration. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

Note: BOEs may be misleading, particularly if used in isolation. In accordance with NI 51-101, a BOE conversion rations 6 mcf: 1bbl of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead

The TSX Venture Exchange Inc. has in no way passed upon the merits of the Arrangement and has neither approved nor disapproved the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

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