True North Energy Corporation (OTC BB:TNEN.OB - News), an independent oil and gas exploration company, announced today that it has acquired certain oil and gas interests in northwest Colorado for roughly $1.036 million. About 35% of the purchase price was paid in cash. The remaining consideration is payable via the issuance of approximately 1.8 million shares of the Company's restricted common stock. The acquired assets consist of oil and gas rights in more than 17,000 lease acres in size and are within the region of significant oil and gas activity. The Company owns a 100% interest in the acquired assets.
The properties provide True North with a second strategic acreage position in one of the most active and gas rich basins in North America. The Company also has significant undeveloped holdings in Alaska, which it acquired during 2006.
John Folnovic, True North Energy's Chief Executive Officer commented, "The acquisition of these assets is part of our strategy of acquiring assets that can supplement our current Alaska portfolio and contribute both significant resource growth, as well as predictable and sustainable production growth. This acquisition is a "target-rich" opportunity where we can apply our expertise and capital to deliver shareholder value and growth-at-a-reasonable-price."
Further Information
Shareholders and interested parties are encouraged to visit True North Energy's website: www.tnecorp.com and download True North Energy Corporation's Information Package. Please feel free to call shareholder relations toll-free on 1-888-567-0888 to receive a corporate information package. Alternatively, sign up at the website to receive news on the company as it becomes available.
About True North Energy Corporation
True North Energy Corporation is a publicly traded, independent oil and gas exploration company, with headquarters in Houston, Texas. True North Energy Corporation is focused on development of company's core asset in Alaska. The company is strategically located in the Cook Inlet and Beaufort Sea areas of Alaska and has commenced technical evaluation of its 34,850 acres of petroleum land holdings. True North Energy Corporation trades on the NASD OTC BB under the ticker symbol: TNEN.
John Folnovic, President and CEO
Forward-Looking Statements
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management, including, but not limited to, the Company's belief that True North Energy Corporation can identify and successfully negotiate leases for oil and gas properties in Alaska, and that the Company can participate in the exploration of those properties. Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. Additional information on risks and other factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission.
Contact:
Contacts:
True North Energy Corp.
Anthony Zelen
V.P. Corporate Communications
1-888-567-0888
Email: ir@tnecorp.com
Website: http://www.tnecorp.com
Source: True North Energy Corp.
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