/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES./
("Eastshore" or the "Company" - TSX Venture: EST.A; EST.B)
CALGARY, April 23 /CNW/ - In April 2007 Eastshore announced a corporate
transaction with Crocotta Energy Inc. whereby Crocotta will acquire all the
outstanding shares of Eastshore. This new combined entity merges mutual well
positioned oil and gas assets with immediate working capital to create an
entity with a solid foundation, financial and technical strength, and the
tools to move forward quickly.
The proposed transaction with Crocotta provides a number of important
benefits to Eastshore's shareholders as follows:
- a strong working capital position of $17-22 million with no debt;
- property concentration on the same trend through western Alberta and
into northeast British Columbia;
- substantial drilling inventory to move production through 1,000 boepd
by year end;
- the ability to accelerate drilling programs and increase acquisition
- most importantly, access to future capital.
Almost four years ago Eastshore began as a public company with zero
production and a very small land base. Our strategy was dedicated to growth
through the drill bit in Alberta's W5 corridor for light-gravity crude and
liquids-rich sweet gas. Eastshore assembled a virtually irreplaceable, highly
prospective land base focused on 4 core areas including the deep, liquids-rich
gas project at Hanlan.
The new Crocotta/Eastshore combined lands offer seven core areas
positioned on a fairway east of the Rocky Mountain foothills belt from
northeast British Columbia to the south west Alberta/U.S. border. There are
numerous drilling targets with at least three years of inventory.
Total combined production of about 680 boepd, together with an increased
resource base and access to working capital sets the stage very well for
success of the new Crocotta entity.
The business plan for Crocotta and Eastshore combined, involves an
integrated strategy of acquisition and exploitation along with the development
of our combined properties through step-out drilling and expansion on all of
the core areas.
"This is a strategy of accelerated growth through BOTH the drill bit and
In North America, we are in a soft energy cycle, however I believe that
the next cycle in the energy sector will be initiated and driven by natural
gas. With a relatively mild winter, pressure on natural gas has been light.
However, fair weather in North America, the reduced demand on gas inventories
and depressed pricing run counter to historic fundamentals. Easily replaceable
reserves must be supported by sustained deliverability to make up for
withdrawals. For example, in Canada natural gas inventories are now less than
2/3 of the 3 and 5 year averages and gas productivity is declining.
"Drilling for gas in Canada is down while demand is increasing and
forecast to increase more - these ingredients all set up a new supply/demand
I believe our timing with Crocotta in setting up for this next energy
cycle is excellent. We, as Eastshore shareholders, are now part of an entity
that is similar to a new start up company. I wish to thank our shareholders
and employees for their patience and loyalty over the past 4 years. Together
we built a strong resource base, one which, combined with the Croccotta
assets, can be driven forward for the benefit of all shareholders.
We have a built-in resource base, we are well-capitalized and led by a
solid management and a strong technical team. We have confidence in a bright
future for the new entity.
Gary Burns, P.Eng,
President & CEO
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Information provided herein contains forward-looking statements. The
reader is cautioned that assumptions used in the preparation of such
information, which are considered reasonable by Eastshore Energy Ltd. at the
time of preparation, may be proved to be incorrect. Actual results achieved
during the forecast period will vary from the information provided and the
variations may be material. There is no representation by Eastshore that
actual results achieved during the forecast period will be the same in whole
or in part as those forecast.
The calculations of barrels of oil equivalent ("boe") are based on a
conversion rate of six thousand cubic feet ("mcf") of natural gas to one
barrel ("bbl") of crude oil. Boe's may be misleading, particularly if used in
isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in any jurisdiction. The Common
Shares will not be and have not been registered under the United States
Securities Act of 1933 and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration
For further information:
For further information: Eastshore Energy Ltd., Telephone: (403)
232-1150, Facsimile: (403) 232-1466, www.eastshoreenergy.com, Gary W. Burns,
President & Chief Executive Officer