Nations Energy Company Ltd.

Tartan Energy Inc.

Tartan Energy Inc.

July 29, 2005 19:41 ET

Nations Energy Company Ltd. Acquires Common Shares of Tartan Energy Inc.

CALGARY, ALBERTA--(CCNMatthews - July 29, 2005) - Nations Energy Company Ltd. ("Nations") announced today that all of the conditions to the offer (the "Offer") made by its wholly-owned subsidiary, 1153298 Alberta Ltd. (the "Offeror"), to acquire all of the outstanding common shares (the "Tartan Shares") of Tartan Energy Inc. (TSX VENTURE:TEW) ("Tartan") not already held by Nations and its affiliates at an offer price of $0.63 per share have been satisfied or waived by the Offeror. The Offeror has taken up and paid for approximately 51,326,149 Tartan Shares, being all of the Tartan Shares tendered to this Offer up to 4:30 p.m. (Calgary Time) on July 29, 2005.

Further to the press release of Tartan dated July 28, 2005, Nations and the Offeror successfully applied to the Alberta Securities Commission and received an order dated July 29, 2005 cease trading the shareholder rights plan adopted by Tartan.

As a result of the take-up of the Tartan Shares deposited to the Offer, Nations and its affiliates hold 71,372,316 Tartan Shares, representing approximately 62% of the outstanding 114,727,870 Tartan Shares. Nations also has the right to exchange, at an exchange rate of $0.45 per share, any of the outstanding principal on a fully-drawn secured credit facility of U.S.$4,800,000 granted by Nations to Tartan Energy U.S.A., Corp., a wholly-owned subsidiary of Tartan, for up to a maximum of 14,186,667 Tartan Shares.

The Offeror has extended its bid to 4:30 p.m. (Calgary time) on August 12, 2005 to allow any Tartan shareholders who have not yet tendered their Tartan Shares sufficient time to do so. The Offeror intends to acquire all Tartan Shares not tendered by the extended expiry time pursuant to rights of compulsory acquisition, if available, or pursuant to a subsequent acquisition transaction and will seek delisting of the Tartan Shares from the TSX Venture Exchange.

Nations is a privately owned Alberta oil and gas company engaged in the exploration for, and the acquisition, development and production of, oil and natural gas reserves internationally. Nations' oil production exceeds 45,000 barrels per day.

Contact Information

  • David G. Wilson
    Executive Vice President of Nations Energy Company Ltd.
    and the Offeror
    (403) 206-1420
    (403) 206-1520 (FAX)
    Nations Energy Company Ltd.
    Suite 750, 255 - 5th Avenue S.W.
    Calgary, Alberta T2P 3G6