Transfer of Blackrod oil sands leases
posted on Feb 03, 2009 01:23AM
North American Oil and Gas - Alberta, Saskatchewan, Texas & California.
|February 2, 2009|
|Canadian Phoenix Resources Corp.: Serrano Energy Announces Sale of 15% Interest in Blackrod/Portage Oil Sands Property|
|CALGARY, ALBERTA--(Marketwire - Feb. 2, 2009) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
CANADIAN PHOENIX RESOURCES CORP. ("Canadian Phoenix") (TSX VENTURE:CPH) is pleased to announce that Serrano Energy Ltd. ("Serrano"), a subsidiary of Canadian Phoenix, has received regulatory approval and completed the previously announced transaction with Pearl Exploration and Production Ltd. ("Pearl") whereby:
(a) Serrano will transfer to Pearl E&P Canada Ltd. ("Pearl E&P"), a wholly-owned subsidiary of Pearl, 3/7ths of its interest (or a net 15% working interest) in its Blackrod oil sands leases located south of Fort McMurray, Alberta;
(b) The resulting working interests in the Blackrod project will be 20% for Serrano and 80% for Pearl (through its wholly-owned subsidiaries) and Serrano will transfer operatorship of the project to Pearl;
(c) Serrano will fund the next $6.25 million of gross expenditures on the Blackrod project, which expenditures will qualify as Canadian Exploration Expense under the Income Tax Act (Canada); and
(d) Pearl will transfer to Serrano all of its 4,037,344 common shares in the capital of Serrano for cancellation and the Pearl nominee will resign from the board of directors of Serrano.
Mr. Robert Chenery, Co-Chairman of the Board of Canadian Phoenix, was named to the board of directors of Serrano effective February 2, 2009, to fill the vacated seat of the Pearl nominee director. With this appointment, Canadian Phoenix holds four of the six positions on the Serrano board.
Earlier this year, Canadian Phoenix acquired 11,050,000 common shares of Serrano as part of a series of transactions. Following the completion of the transactions with Pearl, Serrano has 19,457,389 common shares outstanding, of which Canadian Phoenix's holding represents 56.8% of the issued and outstanding common shares.
Serrano Energy Ltd. is an Alberta-based company formed to participate in heavy oil and natural gas exploration, development and acquisitions in Alberta and Saskatchewan. Serrano's shares are not currently listed for trading on any stock exchange.
Canadian Phoenix Resources Corp. is a publicly-traded junior oil and gas exploration, development and production company with operations in Western Canada. Canadian Phoenix is pursuing a corporate strategy of being a consolidator of oil and gas assets located in the Western Canadian Sedimentary Basin. Strategic corporate acquisitions promote partnerships for the future development of acquired or targeted oil and gas assets. Canadian Phoenix's shares trade on the TSX Venture Exchange under the symbol "CPH".
ON BEHALF OF THE BOARD OF DIRECTORS OF CANADIAN PHOENIX RESOURCES CORP.
Thomas P. Stan, President & CEO