2009-08-10-2008-04-01

To buy co, gaining 2.6 MMBOE 2P, 153,000 net acres undeveloped land.

Great Plains Exploration Inc., Calgary, (Toronto: GPX) plans to acquire RedStar Oil & Gas Inc. (Toronto: RED) for approximately C$26.8 million in stock. Great Plains will pay 0.9 share per RedStar share, or C$0.83 per share based on a five-day weighted average price, a 21% premium, totaling approximately 32.2 million shares. RedStar assets include production of approximately 1,000 barrels of oil equivalent per day (100% gas) in northeastern British Columbia. Proved plus probable reserves are approximately 2.6 million barrels equivalent. Assets include a proprietary 3-D seismic database with a market value of approximately $18 million, and 153,000 net acres of undeveloped land, valued at approximately $5 million. Pro forma, Great Plains will have 6.6 million barrels of oil equivalent proved plus probable reserves in Randell, Alberta, and British Columbia. Production will be more than 2,200 barrels of oil equivalent per day (70% gas). Additional exploration locations are in its Pembina/Crossfire focus area in Alberta, and it holds an undeveloped land base of 300,000 acres.