D.E. Shaw Group

November 30, 2007 18:20 ET

The D. E. Shaw Group Increases Its Share Ownership in Synenco Energy

NEW YORK, NEW YORK--(Marketwire - Nov. 30, 2007) - The D. E. Shaw group announced today that it has become the largest shareholder in Synenco Energy Inc. ("Synenco"). The D. E. Shaw group currently exercises control and direction over 13.51% of the issued and outstanding common shares of Synenco ("Common Shares") (assuming exercise of all of its common share purchase warrants) through its members, D. E. Shaw Laminar Portfolios, L.L.C. ("Laminar Portfolios") and D. E. Shaw Valence Portfolios, L.L.C. ("Valence Portfolios"). The D. E. Shaw group is currently evaluating all options to increase the long-term value of Synenco, including whether to seek representation on Synenco's Board of Directors.

"The D. E. Shaw group invests in a wide range of companies in the energy sector, where we believe we can find an attractive value proposition," said Todd Overbergen, a senior vice president of the D. E. Shaw group. "We have been invested in Synenco for almost three years, and look forward to working with the company to achieve further shareholder value."

On November 26, 2007, Laminar Portfolios acquired 1,500,000 Common Shares at the price of CAD$8.00 per share, and, on November 27, 2007, it acquired an additional 1,000,000 Common Shares at the price of CAD$7.78 per share, representing, in aggregate, approximately 4.95% of the 50,456,229 issued and outstanding Common Shares reported today on the website of the Toronto Stock Exchange. Laminar Portfolios acquired the aforementioned 2,500,000 Common Shares off-market, in private transactions with certain shareholders of Synenco. The new share acquisitions increased Laminar Portfolios' direct total ownership to 5,126,428 Common Shares (the "Laminar Shares"), or approximately 10.16% of Synenco's issued and outstanding Common Shares. In addition to the Laminar Shares, Laminar Portfolios owns 1,244,882 CAD$3.50 common share purchase warrants (the "Laminar Warrants"), exercisable into 1,244,882 Common Shares. Valence Portfolios directly owns 615,400 Common Shares (the "Valence Shares"), or approximately 1.22% of the issued and outstanding Common Shares. If the Laminar Warrants were exercised, the D. E. Shaw group would, in aggregate, exercise control and direction over 13.51% of Synenco. The D. E. Shaw group may, from time to time, acquire additional securities of Synenco, dispose of some or all of the existing or additional securities it holds, or may continue to hold its current positions.

The registered owner of the Laminar Shares and Laminar Warrants is Laminar Portfolios, an entity in the D. E. Shaw group. The registered owner of the Valence Shares is Valence Portfolios, an entity in the D. E. Shaw group. D. E. Shaw & Co., L.P. is the investment adviser of Laminar Portfolios and of Valence Portfolios, and, in its capacity as investment adviser, may be deemed to exercise control and direction over the Laminar Shares, the Laminar Warrants, and the Valence Shares.

D. E. Shaw & Co., L.P., Laminar Portfolios, and Valence Portfolios will be filing a report (as contemplated by National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues) in connection with the recent acquisitions of Common Shares.

For the purposes of this news release, the following entities may be considered joint actors: D. E. Shaw & Co., L.P, Laminar Portfolios, and Valence Portfolios. The filing of the above-mentioned report is not an admission that any entity named in the report is a joint actor with another named entity.

About the D. E. Shaw Group

The D. E. Shaw group is a global investment and technology development firm with more than 1,300 employees; approximately $35 billion in aggregate investment capital as of November 1, 2007; and offices in North America, Europe, and Asia. Since its organization in 1988, the firm has earned an international reputation for financial innovation, technological leadership, and an extraordinarily distinguished staff.

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