CALGARY, Dec. 21 /CNW/ - Verenex Energy Inc. ("Verenex") (VNX - TSX) announced today it has agreed with the Libyan Investment Authority (the "LIA") on the additional amount per share (the "Working Capital Amount") to be paid to shareholders pursuant to the arrangement agreement dated November 5, 2009 (the "Arrangement Agreement"). The LIA, through a subsidiary, has agreed to acquire all of the Verenex shares issued and outstanding upon completion of the transaction at a price per share in cash equal to $7.0906 plus the Working Capital Amount, which is based on the aggregate amount of positive net working capital in Verenex at the time of completion of the transaction. The Board of Directors of Verenex and the LIA have determined that the Working Capital Amount will be $0.1976 per share and the total cash purchase consideration per Verenex share will be $7.2882. Completion of the transaction is scheduled for December 21, 2009.
The Working Capital Amount of $0.1976 is greater than the $0.15 estimated when the Arrangement Agreement was signed, due primarily to lower than expected expenditures by Verenex during the period November 1 to December 18, 2009.
The LIA is a sovereign wealth fund established in 2006 by the General People's Committee of Libya to manage Libya's surplus oil revenues.
Verenex is a Canada-based, international oil and gas exploration and production company with a world-class discovered resource base and exploration portfolio in the Ghadames Basin in Libya.
Forward-Looking Information and Statements
This press release contains forward-looking statements respecting the completion of an arrangement of Verenex. These statements are based on current expectations and are subject to a number of risks and uncertainties, including satisfaction or waiver of all of the conditions precedent set forth in the Arrangement Agreement. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in the securities of Verenex should not place undue reliance on these forward-looking statements.
SOURCE VERENEX ENERGY INC.
For further information: For further information: Jim McFarland, President & CEO, Verenex Energy Inc., Telephone: (403) 536-8009; or Ken Hillier, Chief Financial Officer, Verenex Energy Inc., Telephone: (403) 536-8005, www.verenexenergy.com