SOURCE: Modern Energy Corp.

September 19, 2007 09:52 ET

Modern Energy to Pay Class B Preferred Dividend to Shareholders of Record on November 1, 2007

Substantial Reduction in Public Float to Result Without Reverse Split

LOS ANGELES, CA--(Marketwire - September 19, 2007) - Modern Energy Corp. (PINKSHEETS: MODR) (FRANKFURT: ME2) announced that it will pay a dividend of 1,000 Class B preferred shares for every common share held on a record date of November 1, 2007. The preferred shares (CUSIP 607586 203) will bear a par value of $0.00001 per share with full voting rights.

This dividend is part of a mandatory exchange designed to reduce the Company's public float without reducing current shareholders' interest. Each 1,000 common shares currently held will be surrendered in exchange for 100,000 preferred shares and 1 common share. The shareholders will retain both tradable common shares and tradable preferred shares. This changes the capital structure without a reverse split because all shareholders will retain the same relationships. The preferred shares are also convertible at the rate of 100,000 preferred to 1 common upon payment of $1.00 per common share. However, no payment or action is required by shareholders to participate in and benefit from this mandatory exchange and preferred dividend.

Modern Energy has recently announced progress in its development of the Company's oil and gas interests in Oklahoma. Through an 80%-owned subsidiary, the Company has a major corporate partner that is one of the largest independent natural gas producers in the United States and is in the process of preparing a very promising well for production. In addition, the Company will soon be announcing results on its dewatering of its currently producing natural gas well with the expectation that a significant production increase will be reported.

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About Modern Energy Corporation:

Modern Energy Corp. (PINKSHEETS: MODR) (FRANKFURT: ME2), founded in 1996, is a development stage investment company with interests in oil and gas in Oklahoma, land in the Philippines, and marketable securities. The Company is currently producing natural gas and plans to increase the development of natural gas wells in Oklahoma. The Company also has biofuel feedstock cultivation potential (palm and jatropha oils) on Company land holdings (largely under-developed plantations) totaling over 250,000 hectares (600,000 acres) in the Philippines. In addition, the Company's Mindanao land has mineral rights where potentially valuable quantities of copper, gold, silver and other minerals may be developed. The Company will further assess the property and determine which minerals are commercially viable as a prelude to obtaining a corporate partner for mining development.

The Company's restructuring is based on patent pending business methods developed by New Compendium Corp. (NCC) and used by Modern Energy under license from NCC.


This press release contains forward-looking statements that involve risks and uncertainties. The statements in this release are forward-looking statements that are made pursuant to safe harbor provision of the Private Securities Litigation Reform Act of 1995. Actual results, events and performance could vary materially from those contemplated by these forward-looking statements. These statements involve known and unknown risks and uncertainties, which may cause Modern Energy Corporation's actual results in future periods to differ materially from results expressed or implied by forward-looking statements. These risks and uncertainties include, among other things, development costs and risks, product demand and market competition. You should independently investigate and fully understand all risks before making investment decisions.

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