Sure Energy announces acquisition of private company



    CALGARY, June 29 /CNW/ - Sure Energy Inc. ("Sure Energy" or the "the
Company") (SHR, TSX) is pleased to announce that it has agreed to acquire by
plan of arrangement, all of the issued and outstanding shares of a private oil
and gas company for a total consideration of $8.8 million (the "Proposed
Transaction"). Under the terms of the agreement Sure Energy will pay $0.26 and
will issue 0.4 of a Sure Common Share for each of the 23,036,889 issued and
outstanding common shares of the private company. Sure Energy will finance the
cash portion of the acquisition through its existing working capital surplus
and existing bank line. Sure Energy and the private company have agreed to pay
each other a break fee in certain circumstances. Sure Energy also has the
right to match any superior unsolicited offers that are received by the
private company prior to closing.

    Acquisition Highlights

    The private company's assets are high quality oil and gas properties
located in the North Central, Central and Redwater areas of Alberta. The
Redwater assets are complementary to Sure Energy's existing assets in the area
and significantly increase the Company's exposure to an emerging conventional
light oil resource play in the area. The private company has three producing
horizontal wells in the play and their offsetting lands have potential for up
to 15 low risk development step-out wells. The deal also exposes Sure Energy
to a light oil play in the Pembina area and incorporates several long life,
low decline gas wells in the Deep Basin, Peace River Arch and W5M areas of
Alberta, some of which have down spacing potential. Current attributes of the
private company include:

    
    Production                  200 BOE/day (50% oil)
    Working Capital Surplus     Minimum of $2.2 million
    Undeveloped Lands           22,900 (net acres)
    Tax Pools                   $15 million

    Upon closing of the transaction the combined entity is expected to have
the following attributes:

    Production                  850 BOE/day
    Undeveloped Lands           79,100 (net acres)
    Tax Pools                   $60 million
    Basic Shares Outstanding    46,873,963
    

    The Board of Directors of both Sure Energy and the private company have
approved the Proposed Transaction. The Board of Directors of the private
company has concluded that the Proposed Transaction is in the best interest of
their shareholders and has resolved to recommend that their shareholders vote
their securities in favour of the Proposed Transaction. Peters & Co. Limited
has acted as financial advisor to the private company and has provided the
Board of Directors of the private company with their opinion that the Proposed
Transaction is fair, from a financial point of view, to the holders of the
private company common shares.
    Certain members of the Board of Directors, management and shareholders of
the private company, holding a minimum of 37% of the common shares of the
private company, have entered into lock up agreements to vote their securities
in favour of the Proposed Transaction. An Information Circular is to be mailed
to all private company shareholders on or prior to July 21, 2009 and closing
is expected to occur in late August 2009, subject to approval by the Court of
Queen's Bench, approval of the private company shareholders and certain other
conditions.

    
    Advisories

    Forward-Looking Information
    
    Certain statements regarding Sure Energy and the private company set
forth in this press release, including the completion of the Proposed
Transaction and the attributes of the combined entity, contain forward-looking
information. This forward-looking information is subject to numerous material
risks, uncertainties and assumptions, certain of which are beyond Sure
Energy's control, including the impact of general economic conditions,
industry conditions, volatility of commodity prices, currency fluctuations,
imprecision of reserve estimates, environmental risks, competition from other
industry participants, the lack of availability of qualified personnel or
management, stock market volatility, ability to access sufficient capital from
internal and external sources, uncertainty of receiving approval from the
private company's shareholders for the transaction described herein and
failure to obtain required regulatory approvals, including stock exchange
listing approvals. Readers are cautioned that the material assumptions used in
the preparation of such information, although considered reasonable at the
time of preparation, may prove to be imprecise. Sure Energy's actual results,
performance or achievement could differ materially from those expressed in, or
implied by, this forward-looking information and, accordingly, no assurance
can be given that any of the events anticipated by the forward-looking
information will transpire or occur, or if any of them do so, what benefits
that Sure Energy will derive therefrom. Sure Energy disclaims any intention or
obligation to update or revise any forward-looking information, whether as a
result of new information, future events or otherwise, except as required by
applicable securities laws.

    Production

    In this press release the calculation of barrels of oil equivalent (BOE)
is calculated at a conversion rate of 6,000 cubic feet (Mcf) of natural gas
for one barrel (bbl) of oil based on an energy equivalency conversion method.
BOEs 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.
    Sure Energy is a public company traded on the Toronto Stock Exchange
under the symbol SHR.

    %SEDAR: 00024118E




For further information:

For further information: please visit our website at
www.sureenergyinc.com or contact: Mr. Jeff Boyce, President and CEO, or Mr.
Lance Wirth, Vice President Finance and CFO, Phone: (403) 410-3100, Email:
info@sureenergyinc.com

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