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Gold/Mining/Energy : CDN. Oil/Gas Cos. - Shareholder Maximization -- Ignore unavailable to you. Want to Upgrade?

To: Richard Saunders who wrote (26)	5/18/2001 1:19:09 AM
From: Richard Saunders	Respond to of 56

May 16 Closure for HGY-tse Hornet - Compton cash offer. fin-info.com Hornet Energy Ltd. Accepts Purchase Offer CALGARY, ALBERTA--Hornet Energy Ltd. ("Hornet") announced today that it has accepted an offer (the "Offer") from Compton Petroleum Corporation ("Compton") whereby Compton will purchase all of the issued and outstanding shares of Hornet for $2.00 in cash per share. Hornet has 15,985,685 shares outstanding on a fully diluted basis. The Offer represents a 23% premium to the 10-day weighted average trading price for Hornet of $1.62 per share. "We are delighted to have negotiated this transaction with Compton and believe it will benefit both groups of shareholders" commented Randy Green, President & C.E.O. of Hornet. Pursuant to the Offer, Compton will also assume all of Hornet's outstanding debt of approximately $8.2 million. Hornet's current production is approximately 810 boepd (10:1) with an additional 200 boepd currently behind pipe and awaiting compression and facilities. The boards of directors of both Compton and Hornet have approved the proposed transaction and the board of directors of Hornet will recommend the Offer to Hornet shareholders, subject to execution of a definitive pre-acquisition agreement (the "Pre-acquisition Agreement"). Hornet and Compton expect to complete and execute the Pre-acquisition Agreement by May 28, 2001. Compton anticipates forwarding a take-over bid circular to Hornet shareholders on or before June 11, 2001. The transaction is expected to close by July 16, 2001 and will be conditional on Compton obtaining a minimum of 66 2/3% of the Hornet shares and will be subject to all requisite approvals and other customary conditions. Certain officers, directors and major shareholders of Hornet have agreed to tender their shares to the Offer. The board of directors of Hornet has agreed that it will not solicit any other proposals and has agreed to pay Compton a non-completion fee of $2 million under certain circumstances. Dundee Securities Corporation acted as financial advisor to Hornet and will provide a fairness opinion on the transaction. TD Securities has acted as financial advisor for Compton. Hornet is a Calgary-based oil and gas exploration and production company whose shares trade on The Toronto Stock Exchange under the symbol HGY.