Crocotta Energy Inc.

Crocotta Energy Inc.

June 11, 2007 14:51 ET

Crocotta Energy Inc. and Eastshore Energy Ltd. Announce Closing of Business Combination

CALGARY, ALBERTA--(Marketwire - June 11, 2007) - Crocotta Energy Inc. ("Crocotta") and Eastshore Energy Ltd. ("Eastshore") (TSX VENTURE:EST.A) are pleased to announce that the previously announced Plan of Arrangement (the "Arrangement") under the Business Corporations Act (Alberta) involving Crocotta, Eastshore and the holders (the "Eastshore Shareholders") of Class A Shares ("Eastshore Shares") of Eastshore has been completed. The Arrangement was approved at the annual and special meeting of Eastshore Shareholders and by the Court of Queen's Bench of Alberta on June 8, 2007. Eastshore Shareholders voted over 99% in favour of the Arrangement resolution. Crocotta issued an aggregate of 17,246,102 common shares of Crocotta and $8,480,289.35 in cash to the former Eastshore Shareholders upon completion of the Arrangement. As a result of the Arrangement, Eastshore has become a wholly-owned subsidiary of Crocotta.

This transaction has strengthened and expanded Eastshore's W5 projects at Niton, Ricinus, Sunchild and Hanlan, Alberta into Crocotta's capital projects at Lookout Butte and North Pembina, Alberta and Cache Creek, British Columbia. In addition, Crocotta is pleased to announce that Mr. Gary Burns, the former President and Chief Executive Officer of Eastshore, joined the board of directors of Crocotta upon completion of the Arrangement.

It is anticipated that the Eastshore Shares will be delisted from the TSX Venture Exchange.

Contact Information

  • Crocotta Energy Inc.
    Rob Zakresky
    President and Chief Executive Officer
    (403) 538-3736
    Crocotta Energy Inc.
    Nolan Chicoine
    Vice President, Finance and Chief Financial Officer
    (403) 538-3738
    Crocotta Energy Inc.
    700, 639 - 5th Ave SW
    Calgary, Alberta T2P 0M9