CORK EXPLORATION INC. AND PROFOUND ENERGY LTD. ANNOUNCE
COMPLETION OF PREVIOUSLY ANNOUNCED STRATEGIC COMBINATION
CALGARY, ALBERTA – November 19, 2007 – Cork Exploration Inc. ("Cork") (TSX: CRK) and Profound Energy Ltd. ("Old Profound") are pleased to announce that Cork has completed the previously announced acquisition of all of the issued and outstanding common shares of Old Profound on the basis of 1.6 Cork common shares for each one Old Profound common share resulting in the issuance by Cork of an aggregate of 46,243,426 common shares of Cork ("Cork Shares") to former holders of Old Profound common shares (the "Combination").
In connection with the Combination, the shareholders of Cork, at the annual and special meeting held on November 16, 2007, approved, among other things, the name change of Cork to "Profound Energy Inc." ("Profound"), consolidation of the Cork Shares on a 4 for 1 basis (the "Consolidation") and the election of William T. (Bill) Davis, Nicholas R. (Nick) Wemyss, Robert C. (Rob) Cook, George Chow, Herbert (Herb) Pinder Jr. and Keith E. Macdonald as directors.
Following the completion of the Combination (including the Consolidation), Profound will have 24,902,614 Common Shares outstanding. The Profound common shares are expected to commence trading on the Toronto Stock Exchange (on a post-Consolidated basis) under the symbol "PFX" at the opening of trading on or about November 23, 2007.
The management team of Profound is composed of:
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President and Chief Executive Officer |
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Executive Vice President and Chief
Operating Officer |
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Vice President Finance and Chief Financial
Officer |
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Vice President Exploration |
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Al Grabas |
Vice President Engineering |
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Vice President Land |
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Vice President Drilling and Completions |
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Jay Reid |
Corporate Secretary |
The Board of Directors of Profound has approved a capital expenditures program of $7.3 million for the remainder of 2007 which will include five (3.4 net) wells, and the evaluation of four (3.1 net) cased wells awaiting completion.
In 2008 the Board of Directors of Profound has approved the expenditure of $29.6 MM for the drilling, evaluation and equipping for production of 14 (10.9 net) wells.
Profound is a natural gas leveraged company with high working interests, an extensive suite of drillable locations on a focused prospective undeveloped land base and is led by a strong Board and an experienced and dedicated management team.
Cautionary Statements
Disclosure
provided herein in respect of BOEs may be misleading, particularly if used in
isolation. A BOE conversion ratio of 6
Mcf to 1 Bbl is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the
wellhead. All BOE conversion in this
document are derived by converting gas to oil according to this 6 Mcf to 1 Bbl
ratio.
Certain information set forth in this document, including management's assessment of Cork's and Profound's future plans and operations, contains forward-looking statements. By their nature, forward looking statements are subject to numerous risks and uncertainties, some of which are beyond these parties' control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Cork's and Profound's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statement will transpire or occur, or if any of them do so, what benefits that Cork and Profound will derive therefrom. Cork and Profound each disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
Contact
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Profound Energy Inc. # 1700, 700 6th Avenue SW Calgary, Alberta T2P 3N4 Telephone: (403) 513-1379 Attention: William T. (Bill) Davis President and Chief Executive Officer |
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