THE WOODLANDS, TEXAS--(MARKET WIRE)--Dec 4, 2008 -- Probe Resources Ltd. (the "Company") (CDNX:PBR.V - News) responds today to the baseless allegations made by Frankel Offshore Energy, Inc. ("Frankel") in a lawsuit filed in state court in Houston, Texas, USA, against Probe Resources US Ltd. ("Probe US"), the Company's wholly-owned Nevada subsidiary, and L. Scott Broussard ("Broussard"), the Company's Chairman and Chief Executive Officer. By way of an Amended Petition filed on November 26, 2008, Probe US and Broussard have been added as defendants to an action originally commenced by Frankel against a number of unrelated defendants in September 2008.
Neither the Company nor Broussard have any historical contractual relationship with Frankel and based on a review of the Amended Petition, management of the Company is strongly of the view that the claims against the Company and Broussard are wholly without merit. As such, the Company intends to vigorously defend the claims made by Frankel.
The Company is continuing its drilling, prospect generation, and infrastructure activities in the Gulf of Mexico in the ordinary course of business.
About Probe Resources Ltd.
The Company, along with its wholly-owned subsidiary Probe Resources US Ltd. located in The Woodlands, Texas, is an oil and natural gas exploration and production company focused on generating, acquiring, developing, and operating drilling prospects within the Texas and Louisiana Outer Continental Shelf of the Gulf of Mexico.
ON BEHALF OF PROBE RESOURCES LTD.
Scott Broussard, Chief Executive Officer and Chairman of the Board
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the Company's securities in the United States. The Company's securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Statements in this press release may contain forward-looking information including expectations of future operations (including drill rig commitments and use of proceeds), commerciality of any gas discovered, production rates, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to credit facilities, income and oil taxes, regulatory changes, and other components of cash flow and earnings. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. These risks include, but are not limited to, the risks associated with the oil and gas industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, or reservoir performance, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information.
The TSX Venture Exchange does not accept responsibility
for the adequacy or accuracy of this release.
Contacts:
Probe Resources Ltd.
Scott Broussard
Chief Executive Officer and Chairman of the Board
(281) 210-1170
Email: sbroussard@probe-resources.com
Website: http://www.probe-resources.com
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