Crew Energy Inc.
TSX : CR

Crew Energy Inc.

May 03, 2007 13:35 ET

Crew Energy Inc. Announces Closing of British Columbia Foothills Acquisition

CALGARY, ALBERTA--(CCNMatthews - May 3, 2007) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Crew Energy Inc. ("Crew" or the "Company") (TSX:CR) is pleased to announce that it has successfully closed the previously announced acquisition of a private oil and gas company with producing oil and natural gas properties in northeastern British Columbia (the "Acquisition"). Crew financed the Acquisition with a $59.2 million bought deal Subscription Receipt financing which closed on April 30, 2007, as well as through increased available credit facilities.

The Acquisition increases Crew's production by 39% and includes approximately 3,100 boe per day of production comprised of 95% natural gas and 5% oil and natural gas liquids. Reserves acquired of 10.7 million boe on a proved plus probable basis increases Crew's reserves by 51%. The Company also expands its undeveloped land base in northeast British Columbia by over 33,400 net acres. The assets have significant development opportunities and generally produce from large pools into Crew owned facilities.

Under the bought deal financing, Crew issued 5,750,000 Subscription Receipts at $10.30 per Subscription Receipt for aggregate gross proceeds of approximately $59.2 million. Holders of Subscription Receipts are deemed to have received one common share of Crew for each Subscription Receipt held, effective at the time of closing of the Acquisition, on May 3, 2007. With the closing of the Acquisition, trading in the Subscription Receipts will be halted and will remain halted until the close of business today, at which time the Subscription Receipts will be de-listed from trading on the Toronto Stock Exchange.

Crew is a publicly traded company with its head office in Calgary and is engaged in the business of exploring for, developing and producing crude oil and natural gas and acquiring crude oil and natural gas properties in western Canada.

READER ADVISORY:

Forward Looking Statements - Certain information regarding Crew Energy Inc. set forth in this document, including management's assessment of Crew Energy Inc.'s future plans and operations and reserves estimates contains forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Crew Energy Inc.'s control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Crew Energy Inc.'s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Crew Energy Inc. will derive there from. Crew Energy Inc. assumes no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise, except as required pursuant to applicable securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The common shares offered have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and many not be offered or sold in the United States except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable states securities laws.

Boe's may be misleading, particularly if used in isolation. A boe conversion ration of 6Mcf: 1 bbl is based on an energy equivalency conversion method primarily attributable at the burner tip and does not represent a value equivalency at the wellhead. Estimated values of future net revenue associated with reserves are estimates only, and do not represent fair market value.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Crew Energy Inc.
    Dale O. Shwed
    President and Chief Executive Officer
    (403) 231-8850
    (403) 266-6259 (FAX)
    Email: dale.shwed@crewenergy.com
    or
    Crew Energy Inc.
    John G. Leach
    Vice President, Finance and Chief Financial Officer
    (403) 231-8859
    (403) 266-6259 (FAX)
    Email: john.leach@crewenergy.com