Re: ARC Energy Fund 5's Holdings in Crocotta Energy Inc.



    CALGARY, Sept. 12 /CNW/ - ARC Equity Management (Fund 5) Ltd. (as the
general partner of ARC Energy Fund 5 Canadian Limited Partnership, ARC Energy
Fund 5 United States Limited Partnership and ARC Energy Fund 5 International
Limited Partnership, collectively "ARC Energy Fund 5") of Calgary, Alberta
announced today that it has entered into an agreement with Crocotta and has
agreed to acquire up to 5,555,556 common shares of Crocotta pursuant to a put
and call obligation exercisable by ARC Energy Fund 5 or Crocotta, representing
an aggregate of approximately 9.9% of the Crocotta common shares, assuming the
exercise in full of such right. The put and call obligation may be exercised
only in connection with the closing of Crocotta's transaction with Diamond
Energy Tree Ltd., or thereafter until December 31, 2007.
    ARC Energy Fund 5 as a result now exercises control or direction over an
aggregate of 6,110,000 common shares of Crocotta, representing approximately
12.1% of the current outstanding Crocotta common shares, as well as put and
call obligation rights to acquire an additional 9,155,556 Crocotta common
shares and a call right exercisable by Crocotta for an additional 4,400,000
Crocotta common shares. Assuming the exercise in full of all such rights, ARC
Energy Fund 5 would exercise control or direction over approximately 30.7% of
the then outstanding shares.

    ARC Energy Fund 5 is an investment fund specializing in the energy
sector. Its general partner is ARC Equity Management (Fund 5) Ltd., of the ARC
Financial Group of companies. Although ARC Energy Fund 5 may make further
purchases of common shares of Crocotta through private purchases, such
purchases will be made for investment purposes.
    This press release has been issued in order to comply with applicable
securities legislation.




For further information:

For further information: or a copy of the securities report contact:
Lauchlan Currie, President, ARC Equity Management (Fund 5) Ltd., 4300, 400-3rd
Avenue S.W., Calgary, Alberta, Telephone: (403) 292-0680, Fax: (403) 292-0579

Organization Profile

ARC EQUITY MANAGEMENT (FUND 5) LTD.

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