Sabretooth Energy Ltd.

Sabretooth Energy Ltd.

August 21, 2007 16:11 ET

Sabretooth Energy Closes Plan of Arrangement With Bear Ridge Resources

CALGARY, ALBERTA--(Marketwire - Aug. 21, 2007) - Sabretooth Energy Ltd. ("Sabretooth") and Bear Ridge Resources Ltd. ("Bear Ridge") (TSX:BER) are pleased to announce that the previously announced plan of arrangement (the "Arrangement") under the Business Corporations Act (Alberta) involving Sabretooth and Bear Ridge has been completed today.

Pursuant to the Arrangement, Sabretooth has acquired all of the issued and outstanding common shares of Bear Ridge ("Bear Ridge Shares") for aggregate consideration to Bear Ridge shareholders of 18.6 million Sabretooth common shares and $57.25 million in cash. Sabretooth now has 39.2 million shares outstanding, of which approximately 47% are held by former Bear Ridge shareholders. Bear Ridge is now a wholly-owned subsidiary of Sabretooth.

Pursuant to the terms of the Arrangement and the results of prorating, Bear Ridge shareholders who elected to receive Sabretooth common shares under the Arrangement will receive, for each Bear Ridge Share held, 0.525 of a Sabretooth common share, and shareholders who elected to receive cash under the Arrangement will receive, for each Bear Ridge Share held, approximately $0.973 in cash and 0.282 of a Sabretooth common share.

Sabretooth will continue to be managed by its current executive team and Board of Directors, with the addition of Mr. Vincent Chahley, former director of Bear Ridge, as a director of Sabretooth.

Sabretooth Highlights

With the Arrangement, Sabretooth has added to its high quality land and production base. Sabretooth now has;

- Approximately 155,000 net acres of undeveloped land and an expanded and diversified portfolio of low risk multi-zone drilling and completion opportunities in the Peace River Arch area in Alberta and British Columbia.

- Operatorship of 70% of its production, 85% gas weighted.

- Increased cash flow and critical mass, facilitating additional drilling in the Peace River Arch and British Columbia core areas.

Sabretooth believes that this strategic business combination is an exciting growth opportunity augmenting its already attractive land and production position.

Sabretooth anticipates providing an operational update by the end of August, 2007.

Cautionary Statements

This press release contains forward-looking statements. These statements relate to future events or future performance concerning Sabretooth and Bear Ridge. When used in this press release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "predict", "seek", "propose", "expect", "potential", "continue", and similar expressions, are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect current views with respect to certain events, and are subject to certain risks, uncertainties and assumptions. Many factors could cause Sabretooth's actual results, performance, or achievements to materially differ from those described in this press release. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated, or expected. Specific forward-looking statements in this press release include, among others, statements pertaining to the following: factors upon which Sabretooth will decide whether or not to undertake a specific course of action; and estimated volumes and timing of future production; business plans for drilling, exploration and development; and other expectations, beliefs, plans, goal, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance.

The risks to which Sabretooth is subject include those of the oil and gas industry in general including operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; volatility in global market prices for oil and natural gas; general economic conditions; competition; liabilities and risks, including environmental liability and risks, inherent in oil and gas operations; uncertainties as to the availability and cost of financing and changes in capital markets; alternatives to and changing demand for petroleum products; and changes in legislation and the regulatory environment, including uncertainties with respect to the Kyoto Protocol. Furthermore, statements relating to "reserves" or "resources" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions that the resources and reserves described can be produced profitably in the future. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. These statements speak only as of the date of this press release. Sabretooth does not intend and does not assume any obligation, to update these forward-looking statements to reflect new information, subsequent events or otherwise, expect as required by law.

Contact Information

  • Sabretooth Energy Ltd.
    Joe McFarlane
    CFO
    (403) 229-3050 (ext 241)
    Website: www.sabretooth.ca