Qwest Energy Corp.

June 01, 2005 12:15 ET

Qwest Energy Holds Meetings to Vote on Rock Energy Inc.'s Offer to Purchase Oil and Gas Properties

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 1, 2005) - Qwest Energy is pleased to announce that it held meetings of Limited Partners for its four drilling fund limited partnerships (collectively referred to as "the Qwest Drilling Fund LP's") to vote on Rock Energy Inc.'s ("Rock Energy") offer to purchase the oil and gas properties of the four limited partnerships: Qwest Energy 2001 Limited Partnership; Qwest Energy Income Development Limited Partnership; Qwest Energy II Limited Partnership; and Qwest Energy Development III Limited Partnership.

Results of Meetings of Limited Partners

Qwest Energy 2001 Limited Partnership and Qwest Energy Income Development Limited Partnership

- The resolutions to approve the Offer from Rock Energy were approved by over 95% of the Limited Partners.

Qwest Energy II Limited Partnership and Qwest Energy Development III Limited Partnership

- Over 95% of votes tendered by Proxy are in favor of the Rock Energy Offer but a quorum was not established for the meeting and, as a result, the Meeting was adjourned to June 14th. Pursuant to the Partnership Agreement, there is no quorum required for the adjourned Meeting.

Timing and Procedure

As Rock Energy's Offer is conditional on all four drilling funds accepting the offer, we now expect the transactions to close subsequent to the June 14, 2005 adjourned meeting.

About Rock Energy

Rock Energy is a Calgary, Alberta based TSX listed (symbol RE.TO) junior oil and gas company with a proven and respected executive management team (www.rockenergy.ca). Following the closing of the transaction it is expected that Rock Energy will have 19.6 million shares outstanding (basic) and total debt of $14.5 million.

Qwest Energy has structured the Agreements entered into with Rock Energy to provide the Qwest Drilling Fund LP Limited Partners with several attractive benefits including fair market value assets valuations, liquidity and capital appreciation potential through the Rock Energy shares to be issued to the Limited Partners.

Rock Energy's Executive Management team is lead by Mr. Allen Bey, President and CEO. Mr. Bey founded Avid Oil and Gas in 1996 and sold the company to Husky in 2001 for $160 million. Rock Energy's Board of Directors includes; Messrs. Stuart Clark, Chairman (Director of Storm Exploration and Focus Energy Trust) Allen Bey, President and CEO, Peter Malowany (Vice President Morgas Ltd.), Matthew Brister (President Storm Ventures Intl.) and James Wilson (Vice President Finance and CFO, Grizzly Resources Ltd.).


This press release contains forward-looking statements that involve known and unknown risks, uncertainties, assumptions and other factors, some of which are beyond Qwest Energy's control that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Qwest Energy believes that the expectations reflected in those forward-looking statements are reasonable at the time made but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in, or incorporated by reference into, this press release should not be unduly relied upon. These statements speak only as of the date of such information, as the case may be, and may be superseded by subsequent events. Qwest Energy does not intend, and does not assume any obligation, to update these forward-looking statements.

This press release contains references to barrels of oil equivalent (boe), boes maybe misleading, particularly if used in isolation. A boe conversion of 6 mcf to 1 barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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