Palo Duro Energy Inc.

Palo Duro Energy Inc.

April 11, 2011 08:00 ET

Palo Duro Energy Inc.: Share Consolidation

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 11, 2011) - Palo Duro Energy Inc. ("Palo Duro" or the "Company") (TSX VENTURE:PDE) is pleased to announce that effective as of the opening of trading on Monday April 11, 2011, the Company will consolidate its common share capital on the basis of one post-consolidation common share for every five pre-consolidation common shares held.

The share consolidation was approved by shareholders at the Company's Special Meeting on January 15, 2009. Prior to the consolidation, the Company had 161,091,844 common shares outstanding, and the Company will have approximately 32,218,368 common shares outstanding post-consolidation. The consolidation has been accepted by the TSX Venture Exchange.

Letters of transmittal with respect to the consolidation were mailed out to all registered shareholders. All registered shareholders of the Company will be required to send their certificates representing pre-consolidation common shares with a properly executed letter of transmittal to the Company's transfer agent, Equity Financial Trust Company in Toronto, Ontario ("Equity Transfer") (Shareholder Services 1-416-361-0152 or toll free 1-866-393-4891 or Additional copies of the letter of transmittal can be obtained through Equity Transfer. All shareholders who duly complete letters of transmittal and submit their preconsolidation common share certificates to Equity Transfer will receive post-consolidation common share certificates. No certificates representing fractional post-consolidation common shares will be issued pursuant to the consolidation. All fractional shares resulting from the consolidation will be rounded down to the nearest whole number and no cash consideration will be paid in respect of fractional shares.

Palo Duro Energy Inc. is a Canadian oil and gas exploration and development company with corporate offices in Vancouver, British Columbia.

Palo Duro Energy Inc.

J. Stephen Barley, President & CEO.

Certain statements contained in this news release constitute "forward-looking information" as such term is used in applicable Canadian securities laws, including information regarding the share consolidation. Forward-looking information is based on plans and estimates of management at the date the information is provided and certain factors and assumptions of management. Forward looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risks related to international operations and doing business in foreign jurisdictions, risks associated with the oil and gas industry and exploratory and development activities generally (e.g., operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, risks associated with equipment procurement and equipment failure), the risk of commodity price and foreign exchange rate fluctuations, risks related to future royalty rate changes, and risks and uncertainties associated with securing and maintaining necessary regulatory approvals.

Shares Outstanding: 161,091,844

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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  • Palo Duro Energy Inc.
    Investor Relations