Cyries Energy Inc.

Cyries Energy Inc.

July 04, 2005 09:00 ET

Cyries Energy Inc. Announces Completion of the Acquisition of Devlan Exploration Inc.

CALGARY, ALBERTA--(CCNMatthews - July 4, 2005) - Cyries Energy Inc. ("Cyries") (TSX:CYS) announces today that it has competed its previously announced acquisition of Devlan Exploration Inc. ("Devlan") by way of a plan of arrangement completed under the Business Corporations Act (Alberta) which received the approval of the Devlan shareholders and Alberta Court of Queen's Bench on June 28, 2005. Pursuant to the plan of arrangement Cyries issued 0.25 of a Cyries share in exchange for each Devlan common share and assumed approximately $19 million of debt. As part of the transaction, certain petroleum and natural gas assets and approximately $4.5 million in debt was transferred from Devlan to Dual Exploration Inc ("Dual"), a newly formed corporation. The shares of Dual were distributed to the Devlan shareholders on the basis of 0.5 of a Dual share for each Devlan share. An aggregate of 8,557,625 Cyries shares were issued to Devlan shareholders upon closing of the transaction.

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

- Based on the independent reserves evaluation of Devlan, effective December 31, 2004, Cyries' production is expected to increase by approximately 2,400 boe per day, 80% of which is natural gas and 20% is light oil and natural gas liquids;

- Based on the independent reserves evaluation of Devlan, effective December 31, 2004, Cyries' proved reserves are expected to increase by approximately 3,800 mboe and proved plus probable reserves are expected to increase by 5,500 mboe; and

- Cyries' undeveloped land is expected to increase by 53,000 net acres.

The Devlan assets compliment Cyries' existing assets and increase Cyries' production base by approximately 800 boe/d in or near Cyries' existing core areas of Gold Creek, Valhalla and Pouce Coupe. In addition, Cyries will expand into three new core areas in Rainbow Lake, Marten Hills and Judy Creek. These new areas offer undeveloped land with the same multi-zone characteristics currently being targeted by Cyries' existing drilling program. Cyries will also gain access to key infrastructure including gas plants at Rainbow Lake and Marten Hills and oil batteries at Rainbow Lake and Judy Creek.

Forward Looking Statements

This news release contains forward-looking information and the reader is cautioned that some estimates are used and may prove to be incorrect. Actual results realized may vary materially from the information provided in this presentation. As a result, there is no representation by Cyries that actual results realized in the future will be the same in whole or in part as those presented herein.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy securities in any jurisdiction. None of the Cyries, Devlan or Dual securities distributed pursuant to the plan of arrangement have 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)