Cyries Energy Inc.
TSX : CYS

Cyries Energy Inc.

August 15, 2005 09:00 ET

Cyries Energy Inc. Announces Closing of $57 Million Acquisition

CALGARY, ALBERTA--(CCNMatthews - Aug. 15, 2005) -

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

Cyries Energy Inc. ("Cyries") (TSX:CYS) is pleased to announce that it has completed the previously announced acquisition of all of the issued and outstanding shares in the capital of a wholly-owned subsidiary ("Newco") of a private oil and gas company, for a purchase price of approximately $57 million.

Newco currently has daily production of approximately 1,300 barrels of oil equivalent per day ("boepd"). The Newco assets compliment Cyries' existing assets and increase Cyries' production base by approximately 600 boepd in or near Cyries' existing core area in the Peace River Arch and adds a new core area at Hotchkiss in NW Alberta with approximately 550 boepd.

Cyries expects to achieve a number of key financial and operational benefits from the acquisition, including:

- Cyries' production is expected to increase by approximately 1,300 boepd, 70% of which is natural gas;

- Based on the independent reserves evaluation of Newco, effective April 1, 2005, Cyries' proved reserves are expected to increase by approximately 2,900 mboe and proved plus probable reserves are expected to increase by 4,294 mboe; and

- Cyries' undeveloped land is expected to increase by approximately 19,000 net acres.

As a result of the closing of the acquisition, the gross proceeds of $30,003,255 from the recently completed private placement of subscription receipts have now been released from escrow and applied as partial satisfaction of the purchase price of the Newco shares. In accordance with the subscription receipt agreement, the subscription receipts will be deemed to be converted into common shares of Cyries on August 12, 2005 without any further action on the part of holders of subscription receipts. The transfer register for the subscription receipts will also close on August 12, 2005. The underwriting syndicate for the private placement was led by FirstEnergy Capital Corp. and included Peters & Co. Limited, GMP Securities Ltd., Raymond James Ltd., Tristone Capital Inc. and Clarus Securities Inc.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy securities in any jurisdiction. The Cyries Energy Inc. common shares have not been nor will be registered under the United States Securities Act of 1933, and they may not be offered or sold in the United States absent registration or an exemption from registration.

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

Contact Information

  • Cyries Energy Inc.
    Donald F. Archibald
    Chairman & C.E.O.
    (403) 262-9609
    (403) 262-0055 (FAX)