Masters Energy Inc.

Masters Energy Inc.

April 24, 2009 22:20 ET

Masters Energy Inc. Reaffirms Support for Zargon Arrangement

CALGARY, ALBERTA--(Marketwire - April 24, 2009) -


Masters Energy Inc. ("Masters") (TSX:MSY) announces that following the public announcement of the proposal by Sun Century Petroleum Corporation ("Sun Century") to increase the purchase price under their previously announced offer to acquire all the outstanding Masters common shares from $1.85 per share to $1.95 per share, Masters entered into a confidentiality agreement with Sun Century, allowed Sun Century to conduct certain due diligence investigations and had discussions with representatives of Sun Century. Sun Century subsequently provided a draft letter agreement setting out the terms on which they would be prepared to offer $1.95 per Masters share.

The Board of Directors of Masters has considered the terms of the Sun Century letter agreement and the terms of the existing Arrangement Agreement with Zargon Energy Trust ("Zargon") and has received advice from its financial and legal advisors and has unanimously resolved to reaffirm its support for the Zargon Arrangement in preference to the proposed transaction with Sun Century.

Accordingly the annual and special meeting of shareholders of Masters to vote on, among other things, the Zargon Arrangement whereby Zargon would acquire Masters for a combination of cash and Zargon trust units remains scheduled for April 28, 2009 at 10:00 a.m. (Calgary time) and the unanimous recommendation of the Board of Directors of Masters that shareholders vote in favour of the Zargon Arrangement remains in effect.

Forward-looking Statements

Certain information regarding Masters, including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with oil and natural gas exploration, production, marketing and transportation such as loss of market, volatility of commodity prices, currency fluctuations, uncertainties of reserve estimates, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources; as a consequence, actual results may differ materially from those anticipated. Masters assumes no obligation to update the forward-looking statements contained herein or to update the reasons why actual results could differ from those contemplated by the forward-looking statements, unless so required by applicable securities law.

Contact Information

  • Masters Energy Inc.
    Geoffrey C. Merritt
    President and CEO
    (403) 290-1785
    Masters Energy Inc.
    Randall P. Boyd
    Chief Financial Officer
    (403) 290-1785