Dr. Gang Fang reports

ANTERRA ENERGY ANNOUNCES PROPOSED TRANSACTION TO EXTINGUISH DEBT BY TRANSFER OF ASSETS

Anterra Energy Inc. has signed a purchase-and-sale agreement dated Dec. 22, 2015, with Western Union Petro (Canada) Technology Co. Ltd., a subsidiary of LandOcean Energy Services Co. Ltd. The agreement provides that amounts owed by Anterra to Western Union (approximately $3.2-million) are extinguished in exchange for Anterra transferring its interests in three properties to Western Union.

The interests to be transferred to Western Union are located at Two Creek and Sakwatamau in Alberta, and at Abbott, Sask. The Two Creek property is currently operating at a loss due to low oil prices. Neither the Sakwatamau nor Abbott properties currently have production and are expected to require significant investment to develop the properties. In addition, decommissioning liabilities associated with the properties are estimated at $3.8-million. Management is of the opinion the $3.2-million of debt so extinguished equates to the fair value of the properties being transferred.

The proposed transaction is subject to receipt of all necessary regulatory approvals, including the acceptance of the TSX Venture Exchange, receipt of lender consent and receipt of shareholder consent.

Western Union is based in Calgary and is wholly owned by LandOcean Energy Services, a Beijing-based international oil field services company, listed on the Shenzhen market under the code 300157. LandOcean Energy Services is also the parent of a significant shareholder of Anterra (LandOcean Resources Investment Canada Co. Ltd., which holds approximately 22 per cent of Anterra's issued and outstanding shares). While the proposed transaction is subject to the requirements of Multilateral Instrument 61-101, it is expected that exemptions from the formal valuation and minority approval requirements are available to Anterra.

We seek Safe Harbor.