/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE
TSX Trading Symbol: UTS
CALGARY, April 23 /CNW/ - The Special Committee of the Board of Directors
of UTS Energy Corporation (UTS) wishes to confirm UTS' recommendation that the
offer of $1.75 cash per common share made by Total E&P Canada Ltd. (Total) is
inadequate and not in the best interest of UTS.
John Watson, the Chairman of the Special Committee, stated that "UTS
continues to conduct a thorough process pursuing alternative transactions to
generate superior value for UTS shareholders." The process currently involves
ongoing discussions with financially credible parties relating to a variety of
potential transactions. There is no certainty as to the outcome of such
It is the recommendation of the Board of Directors that UTS shareholders
not tender to the Total Offer which expires April 27, 2009.
UTS Energy Corporation is based in Calgary, Alberta. The Company's common
shares (UTS) are traded on the Toronto Stock Exchange.
FORWARD-LOOKING INFORMATION: Except for statements of historical fact
relating to UTS, this news release contains "forward-looking information"
within the meaning of applicable securities law. The forward-looking
statements in this news release relate to, but are not limited to, statements
with respect to the Total bid and potential alternative transactions, future
plans for UTS' assets, the future value of UTS, potential capital and
operating cost savings and financing requirements related to the Fort Hills
Project, the potential benefits to UTS and the Fort Hills Project of the
proposed merger of Suncor and Petro-Canada, the potential for UTS to be fully
funded for a period of time, the potential for the Lease 421 Area to become a
fourth oil sands project, the Company's anticipated mine plan, drilling
results, capital expenditures, drilling plans, estimated resources,
prospective oil sands, rate of recovery and production estimates of bitumen
resources are based on the opinions and estimates of management at the date
the statements are made, and are subject to a variety of risks and
uncertainties and other factors that could cause actual events or results to
differ materially from those anticipated in the forward-looking statements.
These risks and uncertainties include uncertainties around the specific scope
and timing of the Fort Hills Project or the Lease 421 Area; lack of regulatory
approvals for certain aspects of such projects, the uncertainty regarding
marketing plans for production from certain areas, the estimation or improved
estimation of project costs; commodity price fluctuations, in the case of the
Fort Hills Project the acceptance within the Fort Hills Partnership of the
updates to the Fort Hills Project scope, timing, cost estimates and final
Board of Directors approval of each of the partners, whether the proposed
Suncor and Petro-Canada merger is completed and if so whether UTS will realize
the anticipated benefits of such a merger, the inability of UTS to negotiate
an alternative transaction that provides superior value for shareholders and
those other risks and contingencies described under "Risk Factors" in UTS'
annual information form available on the UTS website www.uts.ca or under UTS'
profile at www.sedar.com. There are numerous uncertainties inherent in
estimating bitumen, including many factors beyond the Company's control, and
no assurance can be given that the indicated level of bitumen or the recovery
thereof will be realized. In general, estimates of bitumen are based upon a
number of factors and assumptions made as of the date on which the resource
estimates were determined, such as geological and engineering estimates,
certain TV:BIP ratios and pit boundaries, which have inherent uncertainties.
There is no certainty that it will be commercially viable to produce any
contingent resources from any of the Fort Hills Project, the Equinox Project
or the Frontier Project. Forward-looking information is frequently
characterized by words such as "plan", "expect", "project", "intend",
"believe", "anticipate", " potential", "should", "would", "estimate",
"likely", "proposed" and other similar words, or statements that certain
events or conditions "may" or "will" occur. Forward-looking information is
based on the opinions and estimates of management at the date the statements
are made, and are subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ materially from
those anticipated in the forward-looking statements. UTS undertakes no
obligation to update forward-looking information if circumstances or
management's estimates or opinions should change except as required by law.
The reader is cautioned not to place undue reliance on forward looking
For further information:
For further information: William J.F. Roach, President and Chief
Executive Officer at (403) 538-7030