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RAGING RIVER EXPLORATION INC. ANNOUNCES CORPORATE ACQUISITION OF ROCK ENERGY INC.

Raging River Exploration Inc. (RRX.T) and Rock Energy Inc. (RE.T ) have entered into an agreement providing for the acquisition by Raging River of all the issued and outstanding Rock common shares pursuant to a plan of arrangement under the Business Corporations Act (Alberta).

The arrangement

Under the terms of the arrangement agreement, Rock shareholders will receive, for each Rock share held, 0.082 Raging River common share. Based on Raging River’s five-day weighted-average trading price of $10.93 per share, the total consideration for the acquisition is approximately $109-million. The consideration for the acquisition is composed of the issuance of 3,896,000 common shares of Raging River and the assumption of approximately $67-million of net debt inclusive of bank debt, working capital deficiency and Rock’s expected transaction costs, including severance obligations.

The acquisition includes 2,550 barrels of oil equivalent per day (95 per cent oil) of production and approximately 25 net sections of highly prospective land targeting Viking light oil in the Kerrobert area of southwest Saskatchewan complementary to Raging River’s existing Viking assets. The Viking light oil drilling inventory associated with the acquisition includes over 200 net Viking horizontal drilling locations identified by Raging River.