2010-01-12-2009-11-23-2010-01-12

Acquired Alberta company, gaining 3.4 MMBOE proved, 1,225 BOE/d.

Angle Energy Inc., Calgary, (Toronto: NGL) plans to acquire Stonefire Energy Corp., (Toronto Venture: SFE) for C$75 million, including C$25.3 million in net debt and transaction costs, in a takeover bid. Under the offer, Stonefire Class A shareholders will receive C$2 per share, while Class B shareholders will receive C$10 per share. The offer represents an increase of 25.6% and 43.7% from the previous 10-day weighted average trading price of the A and B shares, respectively. Angle reports that the acquisition price per proved plus probable barrel of oil equivalent is C$10.47. Stonefire has assets in the greater Edson area of west-central Alberta. Reserves at Sept. 1, 2009, were 3.4 million barrels of oil equivalent proved and 6.4 million barrels of oil equivalent proved plus probable. The reserve life index is 7.6 years for proved reserves and 14.3 years for proved plus probable reserves. The properties have production of approximately 1,225 barrels of oil equivalent per day (70% gas, 15% oil, 15% gas liquids). Operating costs are less than C$4.60 per barrel of oil equivalent, with approximately 75% of production processed through a company-owned gas plant. Angle says horizontal wells in the Edson area have proven to be superior to vertical wells in terms of productivity and reserve recovery. The deal is expected to be approved about Jan. 7, 2010. Stonefire has agreed to pay Angle a noncompletion fee of C$2.25 million if the transaction is not completed. GMP Securities LP is financial advisor to Angle. Cormark Securities Inc. is financial advisor to Stonefire. Angle president and chief operating officer Heather Christie-Burns says, "The agreement with Stonefire represents another significant step in positioning Angle as a resource-focused company with a multi-year drilling inventory across its concentrated west-central Alberta asset base. We have focused on adding to our high-quality asset base through the drill bit, and through accretive acquisitions with horizontal drilling applications that target resource-in-place opportunities, and Stonefire fits this objective."