CALGARY, Sept. 5 /CNW/ - Pacific Rodera Energy Inc. (TSX Venture: PRD)
("we", "Pacific Rodera" or the "Company") is pleased to announce the addition
of several key individuals to the Company's management team.
As outlined in our letter to shareholders, we had hoped to acquire a good
technical management team as part of an overall acquisition of a private or
publicly traded oil and gas company. After reviewing over 100 companies and
their management teams, we came to the disappointing conclusion that most of
the assets to date did not meet our price consideration, concentration, net
back and other acquisition metrics. Furthermore, we were underwhelmed with the
vast majority of technical teams. As a result, we decided to shift our focus
to pick the best management group we could identify, while assets values
continue to fall. In this regard, we are pleased to announce the appointment
of Mark Hornett as Director, President and Chief Operating Officer, as well as
Roger Harman, Chief Financial Officer; Andrew Arthur, Vice President,
Exploration; Doug Crawford, Vice President, Production; and Gerry, Talbot,
Vice President, Land. These individuals will be important for the execution of
our business plan. As highlighted in our letter to shareholders, in the
spring, we will seek acquisitions and farm-ins that represent large working
interests as operators in a limited number of core areas with large contiguous
land positions. We expect to attract companies and partners who are of like
mind to build a mid-size exploration and development company. We want to
create a culture that seeks rewards from exploration success, and that is cost
conscious (i.e., low cost). Finally, we want to create a culture where all
employees are at risk to the outcome of the Company so that we align ourselves
as closely as possible to the shareholders. In this regard, we want to
maintain high levels of employee ownership. The transaction we have structured
with the new technical management team includes the placement of a significant
portion of their net worth in a flow-through unit offering of the Company.
As a result, following the completion of the private placement, directors
and officers of the Company will have invested approximately $12 million in
Pacific Rodera in the past 12 months and hold, directly or indirectly,
approximately 25% of the common shares.
We believe that the next 12 to 24 months represent the best environment
we have seen to effect acquisitions and farm-ins at the most favourable terms.
This, combined with material reductions in drilling, completion, and other
service costs, greatly improves our prospects of building a profitable midsize
oil and gas company.
The New Management Appointments
Mr. Mark Hornett has accepted the position of President and Chief
Operating Officer and agreed to be appointed to the board of directors of the
Company. Mr. Hornett has over 30 years of operational experience in the
Canadian and international oil and gas industry. Prior to joining Pacific
Rodera, Mr. Hornett held the position of Operations Manager at Mission Oil &
Gas Inc. where he directed all drilling and completion activities.
Prior to Mission, Mr. Hornett held senior positions of increasing
technical and managerial responsibility for Burlington Resources Ltd. (which
acquired Poco Petroleum's). Mr. Hornett has extensive experience both in
Canada and internationally. He brings a history of cost discipline and
Mr. Roger Harman has accepted the position of Chief Financial Officer.
Mr. Harman is a Certified Management Accountant with over 30 years of
financial and accounting experience in the Canadian oil and gas industry. Mr.
Harman's background includes, Chief Financial Officer of Canadian Superior
Energy Inc. Prior to Canadian Superior, Mr. Harman was Manager, Production and
Revenue Accounting for AltaGas Services Inc. Prior to AltaGas, Mr. Harman held
numerous financing and accounting positions. Mr. Harman has experience in all
facets of accounting finance and marketing.
Mr. Andrew Arthur has accepted the position of Vice President,
Exploration. Mr. Arthur obtained his Bachelor of Science (Honours) in Geology
from the University of British Columbia in 1985 and his Masters of Science in
Geology from the University of British Columbia in 1987. Mr. Arthur has over
20 years of diverse geological experience in the Canadian and international
oil and gas industry. Prior to joining Pacific Rodera, Mr. Arthur was a Senior
Geologist with Mission Oil & Gas Inc. where he was responsible for the Worsley
core area in the Peace River Arch area and a member of the development team
responsible for exploiting the Bakken Resource play in Southeastern
Saskatchewan. Prior to Mission, Mr. Arthur was a Senior Geologist with
companies varying in size and location. Mr. Arthur has over 15 years
experience in the Peace River Arch which is going to be a focus area for the
Mr. Douglas J. Crawford has accepted the position of Vice President,
Production. Mr. Crawford obtained his Bachelor of Science in Chemical
Engineering from the University of Calgary in 1982. Mr. Crawford has over 25
years of engineering and operational experience in the Canadian oil and gas
industry. Prior to joining Pacific Rodera, Mr. Crawford held the position of
Vice President, Production at Mission Oil & Gas Inc. Prior to joining Mission,
Mr. Crawford held various positions at Burlington Canada Resources Ltd. of
increasing technical and managerial authority. Mr. Crawford has been a team
lead in numerous acquisitions which is a focus of Pacific Rodera.
Mr. Gerry Talbot has accepted the position of Vice President, Land. Mr.
Talbot obtained his Bachelor of Commerce from the University of Calgary in
1973. Mr. Talbot has over 30 years of land acquisitions experience in the
Canadian oil and gas industry. Mr. Talbot's career in the oil and gas industry
started in 1997 with Amoco Canada. Since then, Mr. Talbot has held various
positions with Canadian exploration and production companies. Mr. Talbot has a
reputation as a deal closer.
Mr. David J.L. Williams will relinquish the office of President of the
Company and be appointed to the position of Senior Vice President, Corporate
Development and Investor Relations, where he will be responsible for
developing acquisition opportunities. This is a key role in Pacific Rodera, as
we are an acquisition focused company. Mr. Williams will also continue in his
investor relations role, recognizing the great value of the connections and
relationships which Mr. Williams has developed in his building of Pacific
Rodera. Mr Williams will continue to be one of the largest shareholders in the
Mr. Michael Greenwood will continue to serve as the Chairman and Chief
Executive Officer of the Company.
The appointments of Messrs. Hornett, Harman, Arthur, Crawford and Talbot,
are subject to the approval of the TSX Venture Exchange.
Investments by the Management Appointees in Pacific Rodera
In connection with these appointments, Messrs. Hornett, Harman, Arthur,
Crawford and Talbot have agreed to subscribe for an aggregate of up to
3,600,000 units of the Company at a price of $0.50 per unit for gross proceeds
of approximately $1.8 million. Each unit will consist of one common share of
the Company to be issued on a "flow-through basis" and one-half of one
non-transferable common share purchase warrant. Each whole warrant will
entitle the holder to subscribe for one additional common share at a price of
$0.70 per common share. The warrants will expire on March 2, 2009 unless (i)
during the period commencing on the date that is four months following the
closing date and ending on March 2, 2009, the daily volume weighted average
trading price of the common shares on the TSX Venture Exchange (or such other
stock exchange where the majority of the trading volume occurs) exceeds $1.00
for each day of a period of 20 consecutive trading days, and (ii) the Company
gives the holders of the warrants written notice of such occurrence within 30
days of such occurrence, in which case the warrants will expire at 4:00 p.m.
(Calgary time) on the 30th day following the giving of notice.
The Company intends to use the proceeds of the private placement for
The private placement is subject to the approval of the TSX Venture
Exchange and is expected to close on or about October 5, 2007.
Stock Option Grants
Pacific Rodera also announced that it has granted options to acquire an
aggregate of 3,000,000 common shares of the Company to the new officers. These
options are exercisable for a period of five years at a price of $0.50 per
common share. One-third of these options will vest on September 5, 2008, with
the balance to vest in equal parts on September 5, 2009 and September 5, 2010.
Pacific Rodera is a Calgary-based oil and natural gas company engaged in
the exploration for and the acquisition, development and production of natural
gas and crude oil in western Canada. The Company's common shares trade on the
TSX Venture Exchange under the symbol "PRD".
Statements in this press release contain forward-looking information
including expectations. Readers are cautioned that assumptions used in the
preparation of such information may prove to be incorrect. Events or
circumstances may cause actual results to differ materially from those
predicted, a result of numerous known and unknown risks, uncertainties, and
other factors, many of which are beyond the control of the Company. These
risks include, but are not limited to; the risks associated with the oil and
gas industry, commodity prices and exchange rate changes. Industry related
risks include, but are not limited to; operational risks in exploration,
development and production, delays or changes in plans, risks associated with
the uncertainty of reserve estimates, health and safety risks and the
uncertainty of estimates and projections of production, costs and expenses.
The risks outlined above should not be construed as exhaustive. The reader is
cautioned not to place undue reliance on this forward-looking information. The
Company undertakes no obligation to update or revise any forward-looking
statements except as required by applicable securities laws.
The TSX Venture Exchange Inc. has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Michael Greenwood, Chairman and Chief Executive
Officer; David J.L. Williams, President, Telephone: (403) 234-0501, Facsimile: