Ivory Energy to Get 2 Making Oil Companies

Ivory Energy to Get 2 Making Oil Companies

Tuesday, March 20, 2007 12: 23 PM

Ivory Energy Inc. (TSX VENTURE: IV) is delighted to reveal that Ivory has actually entered into agreements to buy all of the provided and outstanding shares of 101091129 Saskatchewan Ltd. and Zenith Petroleum Corp.

Pursuant to the regards to these arrangements, the gross purchase cost is $251 million for both business. The factor to consider will include a combination of typical shares and systems valued at $0.75 and cash. Each unit will include one common share at $0.75 and one share purchase warrant at $0.75 great for 2 years. Specifically Ivory will release 1,283840 common shares and 1,442,934 systems with the balance being cash. Upon closing, both companies will become completely owned subsidiaries of Ivory.

Zenith’s management team, who have excellent heavy oil experience, will sign up with Ivory as full-time workers. The essential principals will exchange their ownership in Zenith for Ivory units and upon closing will assume the following roles with Ivory:

– James R. Quillian, BSC Petroleum Engineering: Director, Elder Vice President of Engineering and Chief Operating Officer. Mr. Quillian was a co-founder of Zenith Petroleum Corp. and has more than 25 years experience as a petroleum engineer familiar with drilling, conclusions, facilities and production operations, water-flood style and operation and substantial heavy oil experience. He has been President, Vice President and Director of a number of TSX and TSX-V noted companies.

Mr. Shepheard was a co-founder of Zenith Petroleum Corp. and has over 35 years experience as a petroleum geologist included in exploration and advancement and examinations with an unique knowledge in Mannville heavy oil deposits.
He has been Chief Financial Officer of numerous TSX-V listed and private companies in the oil and gas, seismic and other service and manufacturing sectors.
The reserve life averages 11 years for the shown plus likely reserves. The reserves mentioned are based upon 2 reserve evaluations prepared by independent tank engineers, Fekete Associates Inc. and AJM Petroleum Professional as at June 30, 2006 and March 1, 2007 respectively.
29/ boe for the shown plus likely reserves.

The homes of the combined business have additional advancement capacity in low risk re-completions, in-fill and step-out drilling with multi-zone capacity. Upon closing, Ivory will implement an advancement program that will include the re-completion of 26 wells and development drilling of an additional 36 wells. In addition, Ivory will optimize production and cash flow by decreasing operating costs by flow-lining and pressure upkeep. Likewise, Ivory will start water-flooding several of these residential or commercial properties which will significantly increase recoverable oil reserves along with extend the reserves life. This aggressive capital program is anticipated to give Ivory the opportunity to add an extra 2,700 boe/d on the existing lands over the next 18 months.

After closing of the proposed acquisition, Ivory will apply to the TSX-V Exchange for 1,500,000 stock alternatives to the proposed three staff members having a term of 5 years and having a workout price of $0.75, vesting regarding 25%upon granting and every three months afterwards for the first 12 months.

The transactions are subject to regulatory approval.

Ivory has actually given 200,000 stock choices to specialists having a term of 5 years and a workout price of $0.80 per share.

A Boe conversion of 6 Mcf: 1 Bbl is based on the energy equivalency conversion method mainly relevant at the burner idea and does not represent a value equivalency at the wellhead.

This press release does not constitute a deal to offer or the solicitation of a deal to buy any securities of the Company in the United States. The securities of Ivory have actually not been and will not be registered under the U.S. Securities Act of 1933, as changed, or any state securities laws, and might not be provided or sold in the United States or to or for the account or advantage of a U.S. person unless so authorized or pursuant to an available exemption from the registration requirements of such Act or laws.

In particular, this news release includes statements concerning awaited development activities on the Business’s properties.

Additionally, the positive statements consisted of in this press release are made as at the date of this press release and Ivory does not undertake any commitment to upgrade publicly or to modify any of the included forward-looking statements, whether as a result of new info, future occasions or otherwise, other than as may be required by applicable securities laws.

SOURCE: Ivory Energy Inc.

Ivory Energy Inc. Ian E. Gallie President & President 1-877-602-1103 1-877-602-1105(FAX) Email: [email protected] Site: www.ivoryenergy.com

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