Swan Hills Energy Limited Partnership
TSX VENTURE : SWE.UN

September 20, 2007 22:00 ET

Swan Hills Energy Limited Partnership Announces Amendment to Crude Petroleum And Natural Gas Purchase Agreement

CALGARY, ALBERTA--(Marketwire - Sept. 20, 2007) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES NEWSWIRE SERVICES.

Swan Hills Energy Limited Partnership (TSX VENTURE:SWE.UN) ("Swan Hills") announced today that it has reached an agreement to amend the terms of the prepaid crude petroleum and natural gas purchase agreement dated December 20, 2006 and as amended June 27, 2007 for the sale and delivery of crude petroleum and natural gas (the "Agreement"). The Agreement required Swan Hills to have acquired assets capable of producing at least 25% of total contract volume before October 1, 2007 or alternative sources of supply to meet its delivery obligations. Today's amendment to the Agreement provides that, in consideration for the payment by Swan Hills of the sum of approximately $2,230,000, the liabilities of Swan Hills are reduced by a like amount as a result of Swan Hills being released from its obligation to deliver crude petroleum and natural gas during the months of October, November and December 2007. The commencement date for the first delivery of crude petroleum and natural gas under the amended Agreement is January 1, 2008, with all other material clauses remaining substantially the same.

Additionally, as an update to the April 20, 2007 press release whereby Swan Hills announced it was reviewing its strategic alternatives to enhance unitholder value, discussions have been held with several third parties but, as of the date hereof, there are no potential transactions currently under consideration by the Board of Directors of Swan Hills Energy Ltd., the general partner of Swan Hills.

The TSX Venture Exchange has neither approved nor disapproved the information contained herein.

Contact Information

  • Swan Hills Energy Limited Partnership
    D. Alan Ross
    President
    (403) 294-6889
    (403) 294-0105 (FAX)
    Email: aross@matcocap.com
    or
    Swan Hills Energy Limited Partnership
    David M. McGoey
    Chief Financial Officer
    (403) 294-6497
    (403) 294-0105 (FAX)
    Email: dmcgoey@matcocap.com