Kodiak Energy, Inc. and Cougar Energy, Inc. Announces Strategic Agreement
January 27 2010 - 2:01AM
Marketwired
Kodiak Energy, Inc. (OTCBB: KDKN) ("Kodiak" or the "Corporation")
today announces that it has entered into a strategic agreement with
Ore-More Resources Inc. ("Ore-More") (OTCBB: OMORF), based in
Calgary, Alberta. This transaction is to effect the cancellation of
certain indebtedness of Kodiak on behalf of its private subsidiary,
Cougar Energy, Inc. (Cougar), which Ore-More recently acquired from
Zentrum Energie Trust AG ("Zentrum") in the amount of
$1,296,888.60USD and all underlying security, securing the
indebtedness. The strategic agreement was reached between Kodiak
and Ore-More to enable Cougar to seek conventional debt financing,
with more favorable terms, along with equity investment from the
public markets.
At closing of the agreement, Ore-More issued 12,692,324 shares
to Kodiak in exchange for Kodiak's 8,461,549 shares of Cougar,
resulting in 1.5 shares of Ore-More for each share of Cougar; and
Ore-More has cancelled 12,200,000 of its existing shares.
Additionally, Ore-More has cancelled the $1,296,889USD of debt
issued by Kodiak, and guaranteed by Cougar, for Cougar's previously
announced property acquisitions. Ore-More previously announced the
acquisition of this debt from Zentrum Energie Trust AG ("Zentrum")
and the issuance of 216,148 treasury shares at $6.00USD per share
to Zentrum. Ore-More also issued 461,540 shares to Zentrum in
exchange for Zentrum's 307,693 shares of Cougar acquired in prior
transactions.
Kodiak will continue to function as a parent company with
respect to the Cougar assets, now through its shareholder position
in Ore-More. Furthermore, Kodiak retains a formal agreement with
Ore-More for the opportunity to acquire additional shares of
Cougar. Cougar's performance will continue to be reflected on
Kodiak's consolidated financial reporting.
Mr. William Tighe, President of Kodiak, stated, "As a private
company, Cougar has been successful in raising capital and
acquiring producing assets like the recent Trout core area
development project in north central Alberta. These producing
assets have advanced Cougar to being an operator with conventional
light sweet crude with excellent net backs. Our projects are based
on low risk development work to quickly increase production. As a
result of this transaction with Ore-More, the cancelling of the
debt places us in a position that, with the cash flow and reserve
value of the assets, we can immediately move to conventional debt
financings. Currently, we are negotiating terms and conditions with
several possible lenders. Overall, we anticipate a positive outcome
for our shareholders."
About Kodiak:
Kodiak Energy, Inc. is based in Calgary, Alberta, Canada and a
publicly traded oil and gas exploration and development company
focused on developing and exploring onshore oil, gas and CO2
properties within North America. Our main prospects are "Little
Chicago" located in the N.W.T. and "Sofia" located in northeast New
Mexico. Additional information on Kodiak is at
http://www.kodiakpetroleum.com.
About Cougar:
Cougar Energy, Inc. is based in Calgary, Alberta Canada and a
private company. The focus is on the exploration and development of
Canadian based onshore oil and gas properties. The current projects
are the Trout area projects located in north central Alberta and
"Lucy" located in the Horn River Basin in northeast British
Columbia. Additional information on the Trout area and "Lucy"
projects are available at http://www.cougarenergyinc.com.
Forward-looking Statements: This press release contains
forward-looking statements. The words or phrases "would be," "will"
"intends to," "will likely result," "are expected to," "will
continue," "is anticipated," "estimate," or similar expressions are
intended to identify "forward-looking statements". The
Corporation's business is subject to various other risks and
uncertainties, which may be described in its corporate filings
(www.sec.gov and www.sedar.com). Statements made herein are as of
the date of this press release and should not be relied upon as of
any subsequent date. The Corporation cautions readers not to place
reliance on such statements. Kodiak undertakes no obligation to
update or publicly revise forward looking statements or information
unless so required by applicable securities laws.
Contacts: Kodiak Energy, Inc. William Tighe President and CEO
(403) 262-8044 info@kodiakpetroleum.com www.kodiakpetroleum.com
Investor Relations: TC Capital (403) 238-8813 (during market hours)
info@kodiakpetroleum.com
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