Canadian Imperial acquiring Encore Investment assets

By OGJ editors
HOUSTON, June 24 -- Canadian Imperial Venture Corp. has agreed to acquire 100% of the assets of Encore Investments Ltd., including 25 sections of land in southern Alberta and interests in a number of producing oil and gas wells.

The lands include developed and undeveloped acreage predominantly in Alberta at Black Butte, Coutts, Etzikom, Foremost, Forty Mile, Manyberries, Pakowki, Sapphire, Warner, and Yellow Lake. Working interests of the acquired company average 22% in developed lands and 19% in undeveloped lands. For the most part, Canadian Imperial owns the majority interest and will be operator of the undeveloped lands.

Some of the lands to be acquired are held jointly by Encore and Canadian Imperial through Canadian Imperial's subsidiary, USG Energy Corp. Encore is a former shareholder of USG. Since Canadian Imperial's acquisition of USG in May 2007, Encore has held 17.5 million warrants of Canadian Imperial exercisable at 10¢/share until May 2009.

The warrants will be cancelled on closing of this deal, and Canadian Imperial will issue 17.5 million shares to Encore in exchange for all of the issued and outstanding shares of an Encore subsidiary, transferring title to 100% of the assets of Encore to Canadian Imperial.