Jan 09 - Border Petroleum Inc. Announces Update to Reactivation Transaction

Source Press Release
Company Border Petroleum Limited 
Tags Deals, Strategy - Corporate
Date January 09, 2009

Border Petroleum Inc. today announced further information with respect to its proposed reactivation transaction involving the purchase of all of the issued and outstanding securities of Decker Petroleum Ltd. ("Decker") previously announced on September 9, 2008. Decker is a private company that was formed in June 2006 to participate in oil and gas development and exploration prospects.

As previously announced, Border entered into a non-binding term sheet letter agreement with Decker dated as of July 15, 2008 (the "Letter Agreement") to acquire (the "Business Combination") all of the issued and outstanding shares of Decker. The Business Combination, when completed, would constitute the Reactivation Transaction of the Corporation pursuant to Policy 2.6 of TSX Venture Exchange Inc. (the "TSX Venture") Corporate Finance Manual.

Due to adverse market conditions, the Corporation and Decker have been unable to complete the Business Combination pursuant to the terms and conditions set out in the Letter Agreement. To date, the Corporation and Decker have not been able to mutually agree upon revised terms and conditions that reflect current market conditions. Notwithstanding the termination of the Business Combination in its current form, Border and Decker are continuing discussions to negotiate a new agreement and, if successful, Border will issue a further announcement.

Border also intends to continue to review and pursue other potential asset and share acquisition opportunities with a view of ultimately completing a Reactivation Transaction.

The common shares of Border will resume trading on NEX under the symbol BOP.H later next week.

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