Sharon Energy Ltd. announces sale of U.S. operations and assets



    
    /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN
    THE U.S./
    

    CALGARY, Sept. 10 /CNW/ - Sharon Energy Ltd. (TSX-V: SHY) ("Sharon") is
pleased to announce that it has entered into an agreement with Magnum Hunter
Resources Corporation (NYSE - AMEX:   MHR) ("Magnum") to sell to Magnum its U.S.
operating subsidiary for consideration equal to USD $2,350,000, which
consideration is to be satisfied by the issuance to Sharon of 2,294,474 shares
("Magnum Shares") of common stock of Magnum issued at a deemed price of
$1.0242 per share, being the volume weighted average trading price of the
Magnum Shares on the NYSE Amex for the five most recent trading days.
    Closing is expected to occur on or about September 30, 2009 and is
subject to certain customary conditions including, but not limited to, the
receipt of all necessary approvals including the approvals of the TSX Venture
Exchange and the NYSE Amex. The Company is required by the SEC to hold the
Magnum Hunter Shares for six months after the Closing. Sharon currently has a
positive long term view of the prospects for Magnum Hunter and has no current
plans to sell Magnum stock after the mandatory hold period expires.

    Magnum Hunter Resources Corporation

    Magnum Hunter Resources Corporation and subsidiaries are a Houston, Texas
based independent exploration and production company engaged in the
acquisition of exploratory leases and producing properties, secondary enhanced
oil recovery projects, exploratory drilling, and production of oil and natural
gas in the United States.

    Sharon's U.S. Operations

    As reported in Sharon's most recent interim report for the three months
ended June 30, 2009, the U.S. operating subsidiary provided approximately half
of the Company's production base averaging 59 BOEd. Based on the Q1 production
results, Sharon will receive approximately USD $40,000 per flowing barrel from
the sale. Cashflow from U.S. operations during the quarter was USD $87,000
compared with USD $78,000 from Canadian operations. Sharon's management and
staff located in Houston, Texas, will be joining Magnum Hunter after the sale
is closed.

    Sharon's Canadian Operations

    Sharon's Canadian operations will continue to focus on oil exploration
and development in northeast Alberta and Saskatchewan.
    The ongoing Company has no debt, low overhead expenses, and is now well
positioned to expand its Canadian activities.

    TSX-V: SHY

    The Magnum Shares have not been and will not be registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or applicable exemption from the
registration requirements. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any sale of the
Magnum Shares in any jurisdiction in which such offer, solicitation or sale
would be unlawful.

    ADVISORY: This press release contains forward looking statements. More
particularly, this press release contains statements concerning the
anticipated closing date of the sale and the anticipated affect thereof on the
operating results and financial condition of Sharon. Although Sharon believes
that the expectations reflected in these forward looking statements are
reasonable, undue reliance should not be placed on them because Sharon can
give no assurance that they will prove to be correct. Since forward looking
statements address future events and conditions, by their very nature they
involve inherent risks and uncertainties. The closing of the sale could be
delayed if Sharon and Magnum are not able to obtain the necessary stock
exchange approvals on the timelines they have planned. The sale will not be
completed at all if these approvals are not obtained or some other condition
to the closing is not satisfied. Accordingly, there is a risk that the sale
will not be completed within the anticipated time or at all. The forward
looking statements contained in this press release are made as of the date
hereof and Sharon undertakes no obligations to update publicly or revise any
forward looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws.
    Where amounts are expressed on a barrel of oil equivalent (boe) basis,
natural gas volumes have been converted to barrels of oil at six thousand
cubic feet (mcf) per barrel (bbl). Boe figures may be misleading, particularly
if used in isolation. A boe conversion of six thousand cubic feet per barrel
is based on an energy equivalency conversion method primarily applicable at
the burner tip and does not represent a value equivalency at the wellhead.
References to oil in this discussion include crude oil and natural gas liquids
(NGLs).

    
    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.
    

    Forward-looking statements - statements included in this press release
that are not historical facts may be considered "forward-looking statements."
All estimates and statements that describe the Company's objectives, goals or
future plans are forward-looking statements. Forward-looking statements
involve inherent risks and uncertainties where actual results could differ
materially from those currently anticipated.

    
    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: Robert W. Lamond, Chairman, or Brad R. Perry,
CFO, SHARON ENERGY LTD., Calgary, Alberta, Telephone: (403) 269-9889, Fax:
(403) 269-9890

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SHARON ENERGY LTD.

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