Tiger Energy Limited

February 28, 2005 19:35 ET

Tiger Energy Limited Completes Plan of Arrangement and Ridgeback Exploration Ltd. Commences Operations


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: TIGER ENERGY LIMITED

FEBRUARY 28, 2005 - 19:35 ET

Tiger Energy Limited Completes Plan of Arrangement and
Ridgeback Exploration Ltd. Commences Operations

CALGARY, ALBERTA--(CCNMatthews - Feb. 28, 2005) - Bradley Purdy,
President and CEO of Ridgeback Exploration Ltd. ("Ridgeback") and
formerly President and CEO of Tiger Energy Limited ("Tiger") is pleased
to announce that the plan of arrangement (the "Arrangement") involving
Tiger, Ridgeback and Capitol Energy Resources Ltd. ("Capitol") became
effective on February 28, 2005. At a special meeting of the Tiger
shareholders held on February 28, 2005, the shareholders of Tiger
overwhelmingly approved the Arrangement. In addition, on February 28,
2005 the Court of Queen's Bench granted the final order approving the
Arrangement.

Pursuant to the Arrangement, all outstanding common shares of Tiger were
transferred to Capitol and Tiger became a wholly-owned subsidiary of
Capitol. The previous shareholders of Tiger (an unlisted Alberta
corporation which commenced operations in January, 2003) received $2.10
per share, in cash, for each of the 23,501,324 Tiger common shares
outstanding, together with one-fifth of a common share in Ridgeback for
each of the 23,501,324 Tiger common shares outstanding.

Based on Capitol's purchase price (net of working capital), the
acquisition metrics were $77,255 per producing barrel of oil equivalent
("boe") and $22.63/boe and $8.49/boe for proved reserves and proven plus
probable reserves, respectively.

Letters of transmittal were sent by Tiger to its shareholders to be
utilized in order to exchange their Tiger common shares for cash and for
common shares of Ridgeback pursuant to the Arrangement.

Mr. Purdy would like to thank all the team members, the board of
directors and shareholders of Tiger for their contributions to Tiger's
success. Through its exploration efforts, business sense and operational
expertise over the last two years, Tiger discovered and brought onto
production one of the largest Montney oil pools in the Western Canadian
Sedimentary Basin. The sale of Tiger has provided all shareholders with
a solid return on investment and an opportunity to participate in the
upside of Ridgeback.

Ridgeback is a newly incorporated junior oil and gas exploration and
development company formed under the Arrangement. The management of
Ridgeback will consist of Bradley Purdy, as President and CEO, Robert
Klettl, as Vice President, Exploration and Darin Dunlop, as Vice
President, Engineering. Ridgeback's operations will be conducted largely
in the Peace River Arch area of Alberta where it presently holds
approximately 70,000 net undeveloped acres.

Ridgeback also has approximately 100 net boe/day of production and an
additional 100 net boe/day which is expected to be tied in during the
summer of 2005. Ridgeback looks forward to the drilling opportunities it
currently has and future opportunities.

Ridgeback intends on doing a private placement in the short term to fund
its exploration and drilling program.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Ridgeback Exploration Ltd.
    Bradley Purdy
    President and CEO
    (403) 616-9991
    (403) 264-7662 (FAX)