CANADA GAS ENGAGES CALGARY BASED ENERGY TEAM
Vancouver, British Columbia, Canada - February 26, 2010 - Canada Gas Corp. ("Canada Gas" or the "Company") is pleased to announce a new corporate strategy beginning with the engagement of Peter Carwardine, Brian Spilchen and Steve Smith, former key members of the management team of publicly traded Nexstar Energy Ltd. ("NXE" "Nexstar"), as consultants for the Company. These consultants, joined by Mr. Bob Stinn, P.Eng., have been engaged as the Company’s new technical, financial and corporate development team. Mr. Stinn most recently provided engineering support to Devon Canada Corp. in the deep basin of Alberta and British Columbia and he brings business, technical and operational experience gained from managing projects ranging from Fort Laird in the NWT to southern Saskatchewan. The members of the former Nexstar management team bring notable accomplishments to Canada Gas, including their recent success resulting from the drilling of the initial horizontal Cardium light oil discovery well in the East Pembina area of central Alberta as well as numerous successful follow-up wells in the Pembina area - now one of the premiere light oil resource plays in North America. Nexstar was recently acquired for their Cardium oil prospects by Result Energy Inc. ("RTE"), who in turn is currently in the process of being acquired by Petrobakken Energy Ltd. ("PBN").
From their offices in Calgary, Alberta, Canada, this experienced team of consultants will assist the Company in the identification, evaluation and implementation of growth initiatives which may include asset acquisitions, mergers and participation in selected drilling projects, with a specific focus on light oil plays in Western Canada.
Peter Carwardine, BBA
Mr. Carwardine is the President of Baycrest Energy Ltd., a private oil and gas firm based in Calgary, Alberta. Baycrest provides consulting services and business advisory services to selected clients in North America. Mr. Carwardine was most recently the President, CEO and Director of Nexstar Energy Ltd., which was sold in February 2010 to Result Energy Inc. in a sale valued at over $60 MM. Mr. Carwardine is a member of the Canadian and American Association of Petroleum Landmen, is a graduate of the University of Texas (BBA) and has over 30 years of oil and gas operational, business and management experience.
Brian Spilchen, CMA
Mr. Spilchen is the President of 1221816 ALBERTA LTD., a private consulting firm based in Calgary, Alberta. 1221816 provides consulting services and business advisory services to selected clients in Canada. Mr. Spilchen was most recently the VP, Finance & CFO and Director of Nexstar Energy Ltd. since 2006. Prior thereto he held various roles with the National Bank of Canada since 1996, including that of a Manager in the Energy Group. Mr. Spilchen possesses a CMA designation and is a graduate of the University of Alberta and has over 25 years of banking and financial experience.
Steve Smith P.Land
Steve Smith is a Professional Landman with more than 25 years oil and gas land negotiation and administration experience and is an active member of the Canadian Association of Petroleum Landmen. Mr. Smith was most recently Vice-President, Land of Nexstar Energy Ltd. and prior to Nexstar, he held senior land positions at PrimeWest Energy Corp., Calpine Canada Ltd. and Encal Energy Ltd. Mr. Smith currently provides land and business consulting services for selected clients in Western Canada.
Bob Stinn P.Eng.
Mr. Bob Stinn, P.Eng., has over 20 years of multi-disciplined oil and gas experience in Western Canada. He is a member of APEGGA and SPE, is a graduate of the University of Alberta and holds a degree in Petroleum Engineering. Mr. Stinn most recently provided engineering support to Devon Canada Corp. (Deep Basin of Alberta and northeast British Columbia) and previously held the title of VP Operations at each of Chariot Energy and Assure Energy. Mr. Stinn is also a member of the management team of Tyvan Energy Ltd., a privately-held oil and gas production company with operations in southeast Saskatchewan.
In addition, Canada Gas also welcomes Peter Watson, formerly VP Investment Banking of Novadx Ventures Corp., Jim Glass, Principal of Ascenta Capital Partners Inc., Keir Reynolds, VP of Contact Financial and Jackie Cheung, President of Koi Communicatons to its Advisory Board. Collectively, these individuals possess broad junior market experience and will assist the Company in executing its strategic objectives.
President and CEO, Chad McMillan comments that "we are pleased to welcome our new consultants and advisors as we move in an aggressive new direction. By focusing primarily on Western Canadian light oil opportunities which are conducive for horizontal drilling and multi-stage completion techniques, we look to enter a still emerging space which holds tremendous potential for the Company."
The Company is granting 2,740,000 incentive stock options for Directors, Officers, Advisors and Consultants of the Company, exercisable at a price of $0.10 for a period of 5 years.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For more information on Canada Gas Corp., please contact our Head Office.
On Behalf of the Board,
CANADA GAS CORP.
Chad McMillan
President & CEO
ABOUT CANADA GAS
Canada Gas Corp. (TSX.V: CJC; Frankfurt: YXE; OTC-BB: CJCFF) has two natural gas projects located in the foothills region of the prolific petroleum and natural gas bearing Western Canadian Sedimentary Basin, northeastern British Columbia, Canada. The Prophet River and Trutch projects feature varying PNG rights to multiple prospective target horizons, multiple prospective development locations, and flexible logistics. Meanwhile, the Company is diversifying into the Canadian oil space, looking to deploy capital, expertise and new techniques to low risk development situations.
FORWARD LOOKING STATEMENTS
This press release may contain forward-looking statements including expectations of future production. More particularly, this press release contains statements concerning the Partners future production estimates, expansion of oil and gas property interests, exploration and development drilling, regulatory applications, payout estimates, capital expenditures, and drilling locations to be drilled in 2007/2008. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price, price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Additional information on these and other factors that could affect the Partners operations or financial results are included in the Partners reports on file with Canadian securities regulatory authorities. The forward-looking statements or information contained in this news release are made as of the date hereof and the Partners undertake no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. Oil and Gas Advisory. This press release may contain disclosure expressed as "boe". All oil and natural gas equivalency volumes have been derived using the ratio of six thousand cubic feet of natural gas to one barrel of oil. Equivalency measures may be misleading, particularly if used in isolation. A conversion ratio of six thousand cubic feet of natural gas to one barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
