Prairie Schooner Petroleum Ltd.

Prairie Schooner Petroleum Ltd.

September 16, 2005 11:26 ET

Prairie Schooner Petroleum Ltd. Announces Closing of $26.5 Million Corporate Acquisition

CALGARY, ALBERTA--(CCNMatthews - Sept. 16, 2005) - Prairie Schooner Petroleum Ltd. (TSX:PSL) announces today the closing of the previously announced press release of September 12, 2005 to acquire a private company.

Total consideration of approximately $26.5 million was paid, with approximately $15.8 million of cash and the issuance of 700,000 common shares of Prairie Schooner.

The private company has assets in the Killam area of east central Alberta. The private company's current production from the area is approximately 550 boe/d of liquids rich, high heat content natural gas with an additional 200 boe/d currently being tied in to production facilities. The lands are currently being shot with three dimensional (3D) seismic surveys and Prairie Schooner has initially identified 21 exploratory and development prospects on the lands.

The subject transaction is accretive to Prairie Schooner's 2005 forecasts and adds a strategic new core operating area to the Company. The acquisition is consistent with Prairie Schooner's long term strategy.

Our fundamental focus continues to be on increasing shareholder value through a combination of grass roots exploration, strategic acquisitions and subsequent exploitation.

This disclosure contains certain forward looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond Prairie Schooner's control, including: the impact of general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Prairie Schooner's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward looking statements will transpire or occur, or it any of them do so, what benefits, including the amount of proceeds, that Prairie Schooner will derive therefrom.

Contact Information

  • Prairie Schooner Petroleum Ltd.
    Mr. Jim Saunders
    CEO and Chairman
    (403) 303-3750
    Prairie Schooner Petroleum Ltd.
    Mr. Jerry Sapieha, CA
    Vice President, Finance and CFO
    (403) 303-3762