Bronco Energy Ltd.

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Sellers
Marketers
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Description

Bronco Energy Ltd. has retained RBC Rundle to consider strategic alternatives.

Bronco is primarily focused on heavy oil development of approximately 55,000 acres in the Athabasca oil-sands region through its joint venture agreement with the Bigstone Cree Nation. It has assets including an in situ opportunity in the Grand Rapids formation, multiple drilling opportunities in the Wabiskaw formation and a new heavy oil processing facility.

Production in fourth-quarter 2009 was 1,180 barrels of oil equivalent per day. Total proved reserves are approximately 3 million barrels of oil equivalent (3.9 million proved plus probable).

"Although we continue to believe in the potential of the Wabasca acreage held by Bronco, it is not in the shareholders' interest for the company, in its current form, to attempt to capture this potential." says Peter Pelensky, Bronco president and CEO. "The development will be better accomplished by a company with more resources, a more efficient cost structure and a lower cost of capital."

Contact Tom Caldwell, 403-298-9729, tcaldwell@rundleenergy.com.