ENMAX Provides Additional Commentary Regarding Cordero Transaction



    CALGARY, June 5 /CNW/ - ENMAX Acquisition Corp., an indirect wholly-owned
subsidiary of ENMAX Corporation (collectively "ENMAX"), provides the following
additional commentary further to its press release dated May 28, 2008.

    Summary

    Ember Resources Inc. ("Ember") delivered an unsolicited proposal (the
"Ember Proposal") to Cordero Energy Inc. ("Cordero") on May 28, 2008, which
proposed the acquisition of Cordero by Ember in exchange for shares of Ember.
The board of directors of Cordero subsequently announced that it carefully
considered the Ember Proposal, including the advice of both Cordero's
financial advisor and legal counsel, and concluded that the Ember Proposal was
not financially superior to the outstanding offer by ENMAX to acquire all of
the outstanding common shares of Cordero for $4.75 cash for each share (the
"Offer"). The Ember Proposal has since expired.
    It is possible that Ember may make another unsolicited proposal prior to
the final expiry date of the Offer on June 13, 2008. In order to minimize any
confusion that may result from such a last-minute proposal, ENMAX wishes to
make certain comments regarding its views on the quality and value of the
Ember Proposal.

    
    -  In the event that Cordero were to complete a transaction with Ember at
       any time over the next six months, a break fee of $7 million would
       become payable to ENMAX, which represents approximately $0.18 per
       Cordero share.

    -  Ember's market capitalization is less than half of Cordero's, and a
       reverse takeover by Ember offers no certainty of improved liquidity
       for Cordero shareholders.

    -  ENMAX believes that the group of approximately 25.7% of Cordero
       shareholders that supported the Ember Proposal was comprised
       principally of institutional shareholders motivated to receive Ember
       shares rather than cash, and who are also shareholders of Ember.

    -  Ember wishes to put more capital into advancing its contingent
       Mannville coal bed methane resources, which have unknown ultimate
       commercial viability and disappointing results to date.

    -  Ember has historically generated lower cash flow netbacks per barrel
       of oil equivalent ("boe") of production than Cordero.

    -  Approximately 22% of Ember's undeveloped Mannville land holdings are
       scheduled to expire in 2008.

    -  Ember has a higher level of relative indebtedness than Cordero.

    -  Ember's proven and probable reserves are forecast to require
       approximately $51 million in capital expenditures over the next three
       years; Ember's cash flow for the first quarter of 2008 was
       $2.7 million.

    -  Ember has a commitment to pay for approximately $17 million in
       existing infrastructure over the next six years, regardless of
       production levels from related areas.
    

    By contrast, the ENMAX Offer provides Cordero shareholders with full
liquidity in the form of cash consideration, which would enable shareholders
of Cordero to make their own re-investment decisions regarding the subsequent
purchase of shares of Ember, or the securities of any other oil and natural
gas exploration and production company. ENMAX reiterates that it has no
intention of varying the Offer of $4.75 cash per Cordero share. The Offer
expires at 4:30 p.m. (MST) on June 13, 2008.

    Detailed Information

    ENMAX also makes the following observations, based on public disclosure
by Ember:

    
    -  Ember carries a materially higher debt burden than Cordero, as
       evidenced by 12-month trailing net debt to cash flow ratios of 2.9x
       for Ember versus 1.5x for Cordero at March 31, 2008.

    -  Ember has stated that it would like to obtain and deploy additional
       capital to further advance its Mannville resources towards commercial
       production, but has also stated that these resources have not been
       proven commercial to date. ENMAX notes that Ember's Mannville
       operating costs were $80.50 per boe ($13.42 per mcf) for the first
       quarter of 2008.

    -  Page 10 of the 2007 Ember annual report states that the proven plus
       probable finding and development costs, including future capital, for
       the Mannville resources were $98.90 and $42.60 per boe for 2005 and
       2006, respectively. The 2007 finding and development costs were
       reported as 'not meaningful' due to reserves write-downs during 2007.

    -  ENMAX notes a downward technical gross proved plus probable reserves
       revision of 16.6 bcf as set out on page 19 of the 2007 annual
       information form of Ember (the "AIF").

    -  The statement by Ember in its press release on May 27, 2008 regarding
       its contingent resource estimates lacks specificity with respect to
       costs, timing and recoverability. The Ember press release only states
       that management believes that the "Mannville coals will become
       commercial on a larger scale over time". On page 22 of the AIF, Ember
       stated that it expects to develop the contingent resources in its
       Mannville areas during the next five to 20 years.

    -  Ember currently has a commitment to pay AltaGas approximately
       $17 million over the next six years in relation to the construction by
       AltaGas of field gathering and processing facilities on Ember's Acme
       lands, regardless of natural gas production throughput by Ember.

    -  On page 20 of the AIF, the year end proved and the proved plus
       probable reserves of Ember are contingent on significant future
       capital expenditures of $29.5 million and $51.2 million, respectively,
       through 2010.

    -  On page 21 of the AIF, it is notable that 44,276 net undeveloped acres
       of land in the three operating areas of Ember where the Mannville
       resources are located expire in 2008 and a total 115,516 net
       undeveloped acres are scheduled to expire in the next five years
       (representing 22% and 58%, respectively, of Ember's total net
       undeveloped acres in its Mannville areas).
    

    ENMAX encourages Cordero shareholders to review Ember's full public
disclosure record, which can be found at www.sedar.com.

    About ENMAX

    ENMAX Corporation, through subsidiaries and predecessors, has provided
Albertans with safe and reliable electricity for more than 100 years. ENMAX
provides electricity, natural gas and value-added services to more than half a
million residential, commercial and industrial customer accounts in Alberta.
Through a subsidiary, ENMAX Energy is one of Alberta's largest investors in
renewable energy with partial ownership of the McBride Lake Wind Farm and
complete ownership of the Taber Wind Farm. ENMAX Energy's Greenmax was one of
the first green power marketing programs in Canada, and celebrates its 10th
anniversary in 2008. Visit our website at enmax.com.

    You can choose any retailer listed at www.ucahelps.gov.ab.ca or at
310-4822. Electricity delivery to your home or business isn't affected by your
choice of retailer.

    THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE




For further information:

For further information: Peter Hunt, VP, Public Affairs, ENMAX
Corporation, 141 - 50 Avenue SE, Calgary, Alberta, T2G 4S7, (403) 689-6150

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