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Additional Information
Market: TSX-V
Sector: Oil & Gas Exploration & Production
EPIC: CPH
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Canadian Phoenix Resources Corp
www.canadian-phoenix.com
Canadian Phoenix Resources Corp. is a publicly-traded junior oil and gas exploration, development and production company with operations in Western Canada. Canadian Phoenix is pursuing a corporate strategy of consolidating undervalued oil and gas assets located in the Western Canadian Sedimentary Basin. Strategic corporate acquisitions promote partnerships for the future development of acquired or targeted oil and gas assets. Canadian Phoenix shares trade on the TSX Venture Exchange under the symbol "CPH".

 

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Canadian Phoenix Resources Corp. – Completes the acquisition of 60% ownership in Marble Point Energy

3rd Oct 2008, 12:00 am by Sam Kiri
Canadian Phoenix Resources Corp. – Completes the acquisition of 60% ownership in Marble Point Energy
In a market fraught with uncertainties and nervous investors, friendly mergers and acquisitions are quite common. That appears to be the case for Canadian Phoenix Resources Corp. (TSX.V: CPH). CPH has acquired a controlling ownership interest in Marble Point Energy Ltd. (MPE) through a series of transactions as a part of its expansion strategy.

The transaction certainly is in line with the company’s corporate focus which is to consolidate junior exploration and development oil and natural gas operations largely through acquisitions. In fact, CPH now controls approximately 276,000 net acres of land through its two subsidiary partners (Serrano Energy & Marble Point Energy). Serrano Energy is also another prior acquisition by CPH (completed in August 2008).

CPH and MPE completed a financing program pursuant to which the former subscribed for 90,000,000 common shares (approximately 60% of MPE), at a subscription price of $0.65 per MPE Share for a total subscription price of $58.5 and also provided a $41.5 million loan ("Bond Funds"). The Bond Funds have been satisfied by the assignment by Marble Point to Canadian Phoenix of a $35 Million loan payable by Marble Point to an arms length lender (the "Lender"), in addition to a cash payment from Canadian Phoenix in the amount of $6.5 million.

Concurrently with the Transaction, CPH completed a private placement of units that consisted of 329,666,661 CPH 2008 Units at a price of $0.15 per Unit. Each CPH 2008 Unit is comprised of one common share of CPH and one common share purchase warrant. Each CPH 2008 Warrant will entitle the holder to acquire one additional Canadian Phoenix Share for a period of two years at a price of $0.20 per share. However, in the event that the closing price of Canadian Phoenix Shares on the TSX Venture Exchange ("Exchange") is at least $0.30 for a minimum of at least 30 trading days, Canadian Phoenix may reduce the exercise period to that date which is 30 days following the date on which the CPH 2008 Warrant holder receives written notice of the shortened exercise period.

Supported by these acquisitions, CPH has a 2008 exit production target of approximately 6,000 boe/d gross within its operating subsidiary partners. Loftier targets are for 2009 with over 8,000 boe/d of production.  


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