CALGARY, Sept. 8 /CNW/ - Verenex Energy Inc. ("Verenex" or the "Company")
(VNX - TSX) announces that on September 7, 2009, CNPC International Ltd.
("CNPCI") delivered written notice to Verenex terminating the acquisition
agreement entered into with Verenex on February 24, 2009 (the CNPCI
Agreement").
Under the CNPCI Agreement, CNPCI agreed to make an offer to purchase all
of the outstanding Verenex Shares, on a fully-diluted basis, at a price of
Cdn$10 per share and to also fund a Cdn$47 million approval bonus to the
Libyan National Oil Corporation (the "NOC"). Consent by the NOC to the offer
by CNPCI was required under the Exploration and Production Sharing Agreement
for Area 47 (the "EPSA"); however, under the terms of the EPSA, such consent
cannot be unreasonably withheld.
Despite Verenex having complied with all the requirements of the EPSA and
the NOC throughout the public sale process, the NOC has failed or refused to
provide consent to the CNPCI Agreement and stated its intent to purchase
Verenex subject to approval of the General People's Committee ("GPC").
At this time, Verenex is in discussions with Libyan authorities,
including representatives of the GPC, to reach an agreement on the sale of
Verenex to a Libyan investment fund on acceptable terms without Verenex having
to pursue its legal remedies. The GPC has made it clear to Verenex that it is
seeking to negotiate a reduced purchase price.
Investors are cautioned that there can be no assurance that a sale
transaction will be concluded.
Forward-Looking Information and Statements
This press release contains forward-looking statements respecting
possible actions by the Company. These statements are based on current
expectations and are subject to a number of risks and uncertainties that could
materially affect the results. These risks include, but are not limited to:
risks associated with obtaining regulatory approvals; the uncertainty
associated with negotiating with governments; the risks and uncertainties
associated with Verenex seeking legal remedies available under the EPSA
contract such as arbitration, and the risks associated with international
activity. Due to the risks, uncertainties and assumptions inherent in
forward-looking statements, prospective investors in the Company's securities
should not place undue reliance on these forward-looking statements.
%SEDAR: 00020996E
