SPRY ANNOUNCES ENGAGEMENT OF FINANCIAL ADVISOR AND PROVIDES OPERATIONAL UPDATE

CALGARY, Jan. 13 /CNW/ - Spry Energy Ltd. ("Spry" or the "Corporation") announces that it has engaged Peters & Co. Limited to provide financial advisory services, including assistance in identifying and evaluating possible liquidity events aimed at enhancing shareholder value.

Potential transactions Spry may pursue include, among others, a negotiated combination of Spry's business and operations with another oil and natural gas company or other entity by means of a take-over, merger, sale, recapitalization, arrangement, amalgamation, or a sale of assets, or any combination thereof.

There is no assurance that any agreement or transaction will occur, or if a transaction is undertaken, as to its terms or timing. Spry does not intend to disclose developments with respect to this process unless and until the evaluation has been completed or the Board has approved a definitive transaction and the Corporation has entered into a definitive agreement for such transaction.

Operational Update

Corporately, current production rates are approximately 2,600 boe/d weighted 70% to oil and we have three (2.7 net) oil wells scheduled to be placed on production in February.  We continue to be active at East Pembina where we drilled six (5.1 net) oil wells during the three month period ended December 31, 2010.  To date, Spry has drilled 30 (19.4 net) oil wells, with a 100% success rate, in the halo fairway at East Pembina.  Spry is the operator of 27 of those wells. 

Spry plans to drill six (4.6 net) additional oil wells at East Pembina prior to March 31, 2011. We also plan to drill two (1.7 net) heavy oil wells at Northminster and three (1.7 net) oil wells in our Southeast Saskatchewan core area prior to March 31, 2011.

Spry is a Calgary, Alberta based corporation engaged in the exploration, development and production of oil and natural gas.

Forward Looking Statements

This news release contains forward-looking statements relating to the Corporation, including with respect to the strategic alternative review process and potential transactions Spry may pursue. Forward-looking statements typically use words such as "anticipate", "believe", "project", "expect", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. 

These forward-looking statements are based on various assumptions including expectations regarding the outlook for petroleum and natural gas prices; estimated amounts and timing of capital expenditures; the timing, location and extent of future operations; anticipated timing and results of capital expenditures; estimates of future production; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; future exchange and interest rates; impact of increasing competition; ability to market oil and natural gas successfully; the ability of Spry to access capital; availability of potential transactions and interests from third parties in pursuing potential transactions with Spry. While Spry considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties and other factors that contribute to the possibility that the predicted outcome will not occur, including, without limitation: risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation; loss of markets; volatility of commodity prices; currency fluctuations; imprecision of reserve estimates; environmental risks; general economic conditions in Canada, the U.S. and globally; ability to access sufficient capital from internal and external sources; and that the exploration of strategic alternatives may not result in any agreement or transaction and, if completed, that any such agreement or transaction may not be successful or on attractive terms. Readers are cautioned that the foregoing list of factors is not exhaustive.

Although Spry believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not unduly rely on forward-looking statements. The forward-looking statements contained in this news release are made as the date of this news release and the Corporation does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

SOURCE Spry Energy Ltd.

For further information:

Kenneth Bowie      
President & CEO      
Phone: 403-984-6352    
Fax: 403-265-7010
Bill Lewington
Vice President, Finance & CFO
Phone: 403-984-6355

Profil de l'entreprise

Spry Energy Ltd.

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