Titan Announces Execution of Pre-Acquisition Agreement With Canetic Resources Trust



    /THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO
    ANY UNITED STATES NEWS SERVICES./

    CALGARY, Oct. 18 /CNW/ - Titan Exploration Ltd., (TTN.A, TTN.B - TSX)
("Titan" or the "Company"), is pleased to announce that it has entered into a
Pre-Acquisition Agreement with Canetic Resources Trust ("Canetic") whereby
Canetic will make a takeover offer to acquire all the issued and outstanding
shares of Titan in exchange for 0.1917 of a Canetic trust unit (a "Trust
Unit") for each Titan Class A Share and 0.6609 of a Trust Unit for each Titan
Class B Share. The Board of Directors of Titan have unanimously agreed to
support the offer which, based upon the closing price of a Trust Unit on the
Toronto Stock Exchange yesterday of $15.31, represents a 58% premium over the
20-day average trading price of Titan's Class A Shares ($1.86) and a 41%
premium over the 20 day weighted average trading price of Titan's Class B
Shares ($7.15). Titan's Board of Directors has received a fairness opinion,
and has unanimously resolved to recommend that all Titan shareholders tender
their shares in acceptance of Canetic's offer. It is anticipated that the
Takeover Bid Circular and the Directors' Circular including discussion on
terms and conditions of the Canetic offer will be mailed to all Titan
shareholders by no later than November 15, 2007.
    The offer will be subject to certain conditions, including the deposit of
not less than 66 2/3% of the fully diluted outstanding shares of Titan,
receipt of all required regulatory approvals and other customary conditions.
The agreement provides for a non-completion fee of $3.5 million, payable by
Titan to Canetic in certain circumstances, and a non-completion fee of
$1.7 million, payable by Canetic to Titan in certain circumstances. The
agreement also contains customary non-solicitation covenants and Titan has
reserved the right to respond to superior proposals, which Canetic has the
right to match. In connection with the offer, directors and officers of Titan
holding approximately 11% of the Class A Shares of Titan and 9% of the Class B
Shares of Titan (each on a fully diluted basis) will enter into lock-up
agreements with Canetic pursuant to which they will agree to tender their
Titan shares to the offer.
    FirstEnergy Capital Corp. acted as exclusive financial advisor to Titan
with respect to the transaction and has provided Titan's Board of Directors
with its verbal fairness opinion that the consideration to be received
pursuant to the offer is fair, from a financial point of view to the Titan
shareholders.

    Titan Exploration Ltd. is an independent, Alberta-based, junior oil and
gas company engaged in the exploration for, and development and production of,
natural gas and crude oil reserves in western Canada. Titan's areas of focus
include northeast British Columbia, the Peace River Arch area of northwest
Alberta and southwest Saskatchewan. Its Class A and Class B shares trade on
the Toronto Stock Exchange under the symbols "TTN.A" and "TTN.B",
respectively.

    Forward-Looking Statements - Certain information set forth in this
document, including management's assessment of Titan's future plans and
operations, contains forward-looking statements. When used in this document,
the words "anticipate," "believe," "estimate," "expect," "intend," "may,"
"project," "plan", "will", "should" and similar expressions are intended to be
among the statements that identify forward-looking statements. By their
nature, forward-looking statements are subject to numerous risks and
uncertainties, many of which are beyond Titan'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 and ability to
access sufficient capital from internal and external sources. Readers are
cautioned that the assumptions used in the preparation of such information,
although considered reasonable at the time of preparation, may prove to be
imprecise and, as such, undue reliance should not be placed on forward-looking
statements. Titan's actual results, performance or achievement could differ
materially from those expressed in, or implied by, these forward-looking
statements. No assurance can be given that any of the events anticipated will
transpire or occur, or if any of them do so, what benefits Titan will derive
from them. Titan disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.

    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: Trevor Spagrud, Chief Executive Officer, Titan
Exploration Ltd., Telephone: (403) 313-8590, Facsimile: (403) 313-8591,
www.titanexploration.ca; Richard F. McHardy, President, Titan Exploration
Ltd., Telephone: (403) 313-8590, Facsimile: (403) 313-8591,
www.titanexploration.ca

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TITAN EXPLORATION LTD.

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