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File: 01-02-13 News Release on sale of EHR to KEC.pdf
News Release
For Immediate Release January 2, 2013
Kingsland Energy Corp. buys controlling ownership of EHR Enhanced
Hydrocarbon Recovery Inc. from HTC Purenergy Inc.
Kingsland Energy Corp. ("KLE") today announced that, further to its previous announcement, it
still intends to, subject to regulatory and majority disinterested shareholder approval, purchase
control of EHR Enhanced Hydrocarbon Recovery Inc. ("EHR") through the purchase of HTC
Purenergy's entire interest in EHR. Through the acquisition, KLE will gain 70% of EHR's
outstanding shares, adding to the 29% it already owns.
EHR owns and is developing new oil and gas production optimization and enhanced
secondary/tertiary recovery technologies. Its technologies are a strong differentiated
competitive advantage in the oil and gas industry. EHR has an experienced management team
with a background in technology development, deployment and energy technology finance that
will provide additional business synergies to KLE by joining the two companies together.
The acquisition by KLE of the 12 Million common shares of EHR, currently owned by HTC
Purenergy, is subject to KLE issuing 6 Million common shares and the issuance of a secured,
convertible debenture to HTC Purenergy at the date of closing. The value of the debenture,
which is payable or convertible to KLE common shares no later than 24 months from the date of
closing, is equal to the technology development investment previously invested in EHR by HTC
Purenergy, at approximately $1.4 Million dollars. The board of directors of KLE has approved
the transaction.
"We believe this transaction will provide compelling long term value for our shareholders," said
Mark Kilback, Chairman of the Board and Chief Executive Officer of KLE "
About Kingsland Energy Corp.
Kingsland Energy Corp. (KLE: TSXV) is a publicly traded, Saskatchewan based oil company
utilizing advanced drilling and production optimization technology to secure and develop
significant oil reserves in Saskatchewan, Manitoba and Alberta, Canada. KLE is uniquely
positioned as the only resident Saskatchewan Oil and Gas Company with the capabilities,
technologies and strategic alliances to extract the full value from oil assets. Through KLE's
alliance with EHR Enhanced Hydrocarbon Recovery, KLE is able to manage full life oil production
from primary stage through optimized water flood, then tertiary polymer flood and CO2
flood for both light and heavy oil. www.kingslandenergy.com
NEITHER THE 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 THE RELEASE.
For more information contact:
Mark Kilback,
Kingsland Energy Corp.
Telephone: (306) 359-3444
Fax: (306) 545-3262
E-mail: mark@kingslandenergy.com
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