SignalEnergy Inc.

May 26, 2006 23:59 ET

SignalEnergy Inc. - Rejection of Pearl Offer

CALGARY--(CCNMatthews - May 26) - SignalEnergy Inc. (TSX:SGI) ("SignalEnergy" or the "Corporation") announces that the Board has resolved to recommend that shareholders reject the offer by Pearl Exploration and Production Ltd. (the "Offer") to purchase all of the issued and outstanding shares of SignalEnergy.

First Energy Capital Corp., the financial advisors for the Corporation are not able to deliver a favourable opinion to the effect that the consideration offered under the Offer is adequate from a financial point of view. Given the lack of such a fairness opinion and considering current market conditions, the Board has made the determination to recommend rejection of the Offer.

The Board is continuing to investigate value maximization options.

The Board intends to mail a Directors' Circular detailing its recommendation and the reasons therefor on or about May 31, 2006.

Caution to Reader

This news release contains forward-looking statements and the reader is cautioned not to place undue reliance on these statements, as there can be no assurance that the plans, intentions or expectation upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predications, forecasts, projections and other forward-looking statements will not occur.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of SignalEnergy within the United States. The securities of SignalEnergy have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws. Accordingly, the securities of SignalEnergy may not be offered or sold in the United State or to U.S. persons unless registered under 1933 Act and applicable state securities laws or an exemption from such registration is available.

Contact Information

  • SignalEnergy Inc.
    Mr. J. Cameron Bailey
    President and Chief Executive Officer
    (403) 290-2450
    (403) 398-3366 (Fax)