2010-09-29-2010-09-29

To buy assets in Pembina, Niton and Chip Lake areas of AB, gaining 530 BOE/d, 2.3 MMBOE proved and probable.

Crocotta Energy Inc., Calgary, (Toronto: CTA) plans to sell certain assets in west-central Alberta to an undisclosed buyer for C$30 million.

The deal includes C$28 million in cash and C$2 million in drilling credits and warrants.

The assets are in the Pembina, Niton and Chip Lake areas. Production as of July was approximately 530 barrels of oil equivalent per day. Proved and probable reserves as of year-end 2009 were 2.3 million barrels equivalent.

Pro forma, Crocotta will have production of approximately 2,000 barrels equivalent per day (65% gas) and will have pro-forma net debt of approximately $27 million as at Sept. 30.