CALGARY, Sept. 19 /CNW/ - COSTA Energy Inc. ("COSTA" or the
"Company")(TSX Venture Exchange: COE) announces that the Company has entered
into a definitive share purchase agreement with Cumberland Oil & Gas Ltd. with
respect to the proposed sale of all of the shares in the capital of the
Company's wholly owned subsidiary, Costa Resources Ltd. ("CRL") for aggregate
cash consideration of $1,800,000. CRL holds all of the Company's oil and gas
assets. Completion of the transaction is subject to a number of conditions,
including, but not limited to, approval of the transaction by the TSX Venture
Exchange and by special resolution of 66 2/3% of the shareholders of the
Company present in person or by proxy at a duly called meeting and
satisfaction of the other conditions customary in transactions of this nature.
Subject to the satisfaction of all conditions precedent, closing of the
transaction is expected to take place in October, 2008.
Details of the proposed transaction are included in the management
information circular (the "Circular") and related documentation prepared in
connection with the special meeting of shareholders of the Company scheduled
to be convened on October 20, 2008 for the purpose of considering and if
appropriate approving the proposed transaction. A copy of the Circular and
related documents will be mailed to shareholders of the Company on or about
September 29, 2008 and will concurrently be filed on the website for the
System of Electronic Document Analysis and Retrieval ("SEDAR") and will be
available on SEDAR's website at www.sedar.com.
COSTA Energy Inc. is a Calgary based junior oil and gas company, which
explores for, develops, produces, and sells crude oil, natural gas liquids and
natural gas in Alberta.
Forward-Looking Statements: Certain information in this press release
contains forward-looking statements, including, without limitation, statements
relating to the proposed transaction described herein. These forward-looking
statements involve inherent risks and uncertainties, some of which are beyond
the Company's control, including but not limited to the impact of general
economic conditions, industry conditions, commodity price volatility, currency
fluctuations, environmental risks, competition, reserve estimates, ability to
access sufficient capital from internal and external sources and industry
regulation. The assumptions used in the preparation of such information,
although considered reasonable by COSTA at the time of preparation, may prove
to be incorrect and actual results may differ materially from those expressed
in or implied by these forward-looking statements. The Company disclaims any
intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise, except as
otherwise required by applicable securities laws.
The TSX Venture Exchange does not accept responsibility for the adequacy
or the accuracy of this release.
For further information:
For further information: Requests for shareholder information should be
directed to Mr. Terry D. Brooker, President and Chief Executive Officer, COSTA
Energy Inc., (403) 206-3430, Email: firstname.lastname@example.org