2009-08-05-2009-08-01

To buy co., gaining 200 BOE/d.

Sure Energy Inc., Calgary, (Toronto: SHR) plans to acquire an undisclosed private oil and gas company for C$8.8 million. Sure Energy will pay $0.26 and issue 0.4 share for each of the 23 million issued and outstanding common shares of the private company. The private company's assets include 22,900 net undeveloped acres of oil and gas properties in the north-central, central and Redwater areas of Alberta. The Redwater assets are complementary to Sure Energy's existing assets in the area and significantly increase the company's exposure to an emerging conventional light oil resource play in the area. The private company has three producing horizontal wells in the play and its offsetting lands have potential for up to 15 low-risk development step-out wells. The deal also exposes Sure Energy to a light-oil play in the Pembina area and incorporates several long-life, low-decline gas wells in the Deep Basin, Peace River Arch and W5M areas. Production is 200 barrels of oil equivalent (50% oil). Pro forma, Sure Energy will have production of 850 barrels equivalent per day. Sure Energy will finance the cash portion of the acquisition through its existing working capital and existing bank line. Peters & Co. Ltd. is financial advisor to the private company. The deal is expected to close in late August.