Peerless Energy Inc.
TSX VENTURE : PRY.A
TSX VENTURE : PRY.B

Peerless Energy Inc.

November 01, 2005 15:38 ET

Peerless Energy Inc. Announces Closing of Private Company Acquisition

CALGARY, ALBERTA--(CCNMatthews - Nov. 1, 2005) - Peerless Energy Inc. (TSX VENTURE:PRY.A) (TSX VENTURE:PRY.B) ("Peerless" or the "Company") is pleased to announce the closing on October 31, 2005 of the Company's previously announced acquisition of all of the shares of a non-arms length private Alberta oil and gas company ("Private Co") for $2.50 million net of working capital adjustments. The assets acquired are in the Company's core area of Northeast British Columbia and Alberta. Certain officers, directors and employees of Peerless owned approximately 57% of the shares of Private Co and have exchanged their interest in Private Co for 380,951 Peerless shares at $4.20 and $300,000 cash. In total, the shareholders of Private Co have exchanged their interest in Private Co for 595,238 Peerless shares and $300,000 cash. The acquisition was approved by an independent committee of the Peerless Board of Directors based on an engineering report by third party engineers.

Peerless Energy Inc. is a junior oil and gas company engaged in the exploration for, and development and production of, natural gas and light oil reserves primarily in the provinces of Alberta, Saskatchewan, and British Columbia.

Peerless' Class A and Class B shares trade on The TSX Venture Exchange under the symbols, PRY.A and PRY.B respectively.

ADVISORY

This press release may contain forward-looking statements including management's assessment of future plans and operations, expectations of future production, cash flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), acquisitions, commodity price and exchange rate fluctuation and uncertainties resulting from competition from other producers and ability to access sufficient capital from internal and external sources. Additional information on these and other factors that could affect Peerless' operations and/or financial results are included in Peerless' reports on file with Canadian securities regulatory authorities.

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

Contact Information

  • Peerless Energy Inc.
    Wade Becker
    President and Chief Executive Officer
    (403) 263-1590
    (403) 263-1591 (FAX)
    or
    Peerless Energy Inc.
    Dan Toews
    Vice President, Finance and Chief Financial Officer
    (403) 263-1590
    (403) 263-1591 (FAX)
    Website: www.peerlessenergyinc.com