SignalEnergy Inc.

June 15, 2006 23:59 ET

SignalEnergy Recommends that Shareholders Do Not Tender to the Pearl Offer

CALGARY--(CCNMatthews - June 15) - On May 16, 2006, Shareholders of SignalEnergy Inc. ("Signal") were mailed a Take Over Bid Circular describing an offer by Pearl Exploration and Production Ltd. ("Pearl") to acquire all of the shares of Signal (the "Pearl Offer"). The Pearl Offer consists of 0.25 shares of Pearl, $1.45 in cash or a combination of cash and shares for each share of Signal, with the cash component being limited to a maximum of $35 million. Based on the average trading price of Pearl over the past five days the share consideration under the Pearl Offer is worth $1.21 per Signal share. Pearl's share price has decreased 25% since the mailing of the Pearl Offer.

The Board of Directors has described the rationale for their recommendation to REJECT THE PEARL OFFER in a Directors' Circular mailed to Shareholders on May 31, 2006. The Directors' Circular can be found on the Corporation's website at or on SEDAR at Shareholders are urged to take no action in respect of the Pearl Offer. In order to ensure that you do not accept the Pearl Offer, do not complete, execute or return the Letter of Transmittal or Letter of Guarantee. No action is required in order for you to reject the Pearl Offer. As well, you should instruct your investment dealer not to accept the Pearl Offer on your behalf.

The Board of Directors continues to actively review strategic alternatives, including a distribution of all or a part of its significant positive working capital of $65 million to Shareholders. FirstEnergy Capital Corp. has been retained by the Board of Directors to assist in examining strategic alternatives.

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 Signal within the United States. The securities of Signal 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 Signal may not be offered or sold in the United State or to U.S. persons unless registered under the 1933 Act and applicable state securities laws or an exemption from such registration is available.

Contact Information

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