Benchmark terminates Transaction with Delavaco Energy Inc.; swaps Brazilian interests for interest in block in Colombia



    
    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES/
    

    CALGARY, June 16 /CNW/ - Benchmark Energy Corp. (TSXV: BEE) ("Benchmark"
or the "Company") today announced that it has agreed to terminate its
previously announced business combination (the "Transaction") with Delavaco
Energy Inc. ("Delavaco"). The Transaction, originally announced on December 2,
2008, was subject to, among other things, Delavaco obtaining sufficient
financing to meet the minimum listing requirements of the TSX Venture Exchange
("TSXV").
    In connection with the termination of the Transaction Delavaco has made a
payment to Benchmark in the amount of CDN$150,000. In addition, Delavaco has
repaid to Benchmark the bridge loan (the "Loan") advanced by Benchmark to
assist Delavaco in meeting short term obligations on its properties. Total
principal plus interest on the Loan was US$1,297,468.03.
    "We are disappointed to not be able to move forward with the Transaction.
Unfortunately, in difficult markets, sufficient financing could not be secured
by Delavaco to satisfy the requirements of the TSXV to approve the
Transaction; based upon this, we determined that it was in the best interests
of our shareholders to terminate the Transaction rather than pursue the
business combination when it might never get approved. In light of the
termination of the Transaction, the Board of Directors of Benchmark will
evaluate the Company's strategic direction and consider which alternatives
would best maximize returns for our shareholders", stated David Robinson,
President and Chief Executive Officer of the Company.
    Separately, the Company is pleased to report that it has entered into an
agreement with Canacol Energy Inc. ("Canacol") regarding swapping the working
interests held by Benchmark in 3 onshore blocks in Brazil for a working
interest in a block in Colombia which has had an oil discovery in the past;
details of this transaction will be released once Canacol has received
thenecessary approvals. Benchmark originally paid US $1.7 million for the
Brazil working interests. There are currently 25,758,578 common shares of
Benchmark outstanding.

    Resumption in Trading

    Trading of the Benchmark Shares, which has been halted in connection with
the Transaction, are expected to recommence trading on Thursday, June 18,
2009.

    About Benchmark Energy Corp.

    Benchmark is a development stage junior oil and gas company focused
internationally which holds the preferential right in Colombia, Peru, Ecuador
and Trinidad for the use of a proprietary well-performance enhancement
technology.

    Forward-Looking Statements

    Certain information set forth in this press release, including
management's assessment of future plans and operations, contains
forward-looking statements. The use of any of the words "anticipate",
"continue", "estimate", "expect", "may", "will", "project", "should",
"believe" and similar expressions are intended to identify forward-looking
statements. By their nature, forward-looking statements are subject to
numerous risks and uncertainties, some of which are beyond management's
control, including the impact of general economic conditions, industry
conditions, volatility of commodity prices, currency fluctuations, imprecision
of reserve or resource estimates, environmental risks, competition from other
industry participants, the lack of availability of qualified personnel or
management, stock market volatility and the 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. Actual
results, performance or achievement could differ materially from those
expressed in, or implied by, these forward-looking statements. No assurance
can be given that any of the events anticipated will transpire or occur, or if
any of them do so, what benefits will derive from them. Benchmark disclaims
any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.

    
    Neither the TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release.
    





For further information:

For further information: Benchmark Energy Corp., David Robinson,
President and Chief Executive Officer, (403) 802-0770

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BENCHMARK ENERGY CORP.

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