Kootenay Energy Inc.

Kootenay Energy Inc.

September 16, 2008 18:11 ET

Kootenay Energy Inc. Announces Golden Oil Corporation Completes Acquisition of Kootenay Energy Inc.

CALGARY, ALBERTA--(Marketwire - Sept. 16, 2008) - Kootenay Energy Inc. (TSX:KTY) ("Kootenay" or the "Corporation") and Golden Oil Corporation ("Golden") jointly announce that Golden Oil Canada Corporation, a wholly owned subsidiary of Golden, has taken up, paid for and acquired 22,056,980 or 94.26% of the issued and outstanding common shares of Kootenay on a fully diluted basis in connection with Golden's previously announced cash offer for the common shares of Kootenay. The offer price was $0.66 Cdn per common share, representing an approximate 65% premium to the closing trading price of the common shares of Kootenay on July 15, 2008, the last trading day on which the common shares traded prior to the announcement of the offer.

It is anticipated that a notice of compulsory acquisition relating to the compulsory acquisition of the remaining 5.74% of the issued and outstanding common shares of Kootenay under the provisions of Part 16 of the Business Corporations Act, Alberta, will be mailed to the remaining shareholders of Kootenay today. Upon completion of this compulsory acquisition, it is anticipated that Kootenay will become a wholly owned subsidiary of Golden.

In connection with the completion of the take-over bid all of the existing directors of Kootenay except for John C. Marsh have resigned and the following individuals have been appointed as directors of the Corporation including: Hee-Cheol Koo, Byung-wook Hwong, Jong Ho Kang and John C. Marsh.

It is anticipated that an application will be made to the TSX Venture Exchange Inc. in the near future to delist the trading of the common shares of Kootenay.

The above disclosure contains certain 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 the Corporation's control, including: the impact of general economic conditions in Canada, industry conditions, increased competition, the lack of available qualified personnel or management, equipment failures, fluctuations in product prices and in foreign exchange or interest rates and stock market volatility. The Corporation's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances 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 the Corporation will derive there from.

The TSX Venture Exchange Inc. does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Kootenay Energy Inc.
    John C. (Jack) Marsh
    President and Chief Executive Officer
    (403) 355-9800