Spartan Exploration Ltd. and Spartan Oil Corp. Announce Completion of Arrangement and Creation of Public Cardium Focused Oil and Gas Company

CALGARY, ALBERTA--(Marketwire - June 1, 2011) -

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Spartan Exploration Ltd. (TSX:SPE) ("Spartan") and Spartan Oil Corp. (TSX:STO) are pleased to announce that their previously announced Plan of Arrangement ("the Arrangement") involving Spartan, ExploreCo and a public senior oil and gas company (the "Acquirer") closed on June 1, 2011. Under the terms of the Arrangement, the Acquirer has acquired the issued and outstanding common shares of Spartan ("Spartan Shares") in a transaction valued at approximately $244 million. In accordance with the Arrangement, Spartan shareholders received, for each Spartan Share held, consideration consisting of: (i) $4.00 cash; (B) one (1) common share of ExploreCo ("ExploreCo Share"); and (C) 0.1667 of a ExploreCo Share purchase warrant of ExploreCo, each whole warrant entitling the holder to purchase one ExploreCo Share at an exercise price of $1.49 per share until 4:30 p.m. (Calgary time) on July 1, 2011.

The ExploreCo Shares have been conditionally approved for listing by the Toronto Stock Exchange. Trading in respect of the ExploreCo Shares is expected to commence on or about June 6, 2011, under the symbol "STO".

The management team of ExploreCo will be led by Richard F. McHardy, as the President and Chief Executive Officer, Michelle Wiggins as Chief Financial Officer, Fotis Kalantzis as Vice President, Exploration, Alberta Stark as Vice President, Operations, Eddie Wong as Vice President, Engineering and Barry McNamara as Vice President, Development (the "Management Team"). The Management Team has been fundamental to Spartan's growth since inception by leading Spartan's efforts in the exploitation and acquisition of its high quality oil and gas assets and will continue to be a key component of ExploreCo's future success. The Board of Directors of ExploreCo consists of Michael Stark (Chairman), Wade Becker, Don Archibald, Reginald Greenslade and Grant Greenslade.

ExploreCo will continue with Spartan's approach to growth by acquiring, exploiting and exploring for light oil reserves in Western Canada, particularly in the Pembina area. The primary assets of ExploreCo consist of a 97.12% interest in the Pembina Keystone Cardium Unit No. 2, a 25.26% interest in the Pembina Keystone Cardium Unit No. 1, 26 (22 net) sections of undeveloped land is southwest Saskatchewan and 98 (71 net) sections of undeveloped land in southeast Saskatchewan. ExploreCo has in excess of 800 boe/d of long life, oil weighted production and 4,256.8 mboe of proved plus probable reserves as evaluated by Sproule Associates Limited and GLJ Petroleum Consultants Ltd. effective December 31, 2010. In connection with the assets acquired by ExploreCo pursuant to the Arrangement, ExploreCo has identified a multi-year inventory of horizontal drilling locations on the ExploreCo lands, with the vast majority of these locations currently unbooked. ExploreCo assumed $20.7 million of Spartan's debt as part of the Arrangement.

As previously announced, ExploreCo will complete a private placement of $11.0 million of ExploreCo Shares at an issuance price of $1.49 per ExploreCo Share (the "Private Placement"). The Private Placement is expected to close on or about June 8, 2011. Proceeds from the ExploreCo Warrants and Private Placement will be used initially to retire the $20.0 million debt assumed by ExploreCo as part of the Arrangement. ExploreCo has also secured a line of credit of $25 million from a bank.

READER ADVISORY

This press release contains forward-looking statements as to ExploreCo's internal projections, expectations or beliefs relating to future events or future performance, including for ExploreCo, future financing, asset ownership and operating plans as set forth under the heading "ExploreCo". In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expects", "projects", "plans", "anticipates" and similar expressions. These statements represent the expectations or beliefs of management of ExploreCo concerning, among other things, future capital expenditures and future operating results and various components thereof or the economic performance of ExploreCo. The projections, estimates and beliefs contained in such forward-looking statements are based on management's assumptions relating to the production performance of ExploreCo's oil and gas assets, including the assets to be acquired through ExploreCo, the cost and competition for services throughout the oil and gas industry in 2011, the results of exploration and development activities during 2011, the market price for oil and gas, expectations regarding the availability of capital, estimates as to the size of reserves and resources, and the continuation of the current regulatory and tax regime in Canada, and necessarily involve known and unknown risks and uncertainties inherent in exploration and development activities, geological, technical, drilling and processing problems and other risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted. ExploreCo do not individually or jointly undertake to update any forward looking information in this document whether as to new information, future events or otherwise except as required by securities rules and regulations.

Note: Barrels of oil equivalent (BOEs) may be misleading, particularly if used in isolation. In accordance with NI 51-101, a BOE conversion ratio for natural gas of 6 Mcf:1bbl has been used, which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

This news release is not for dissemination in the United States or to any United States new services. The common shares of ExploreCo have not 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 in the United States or to any U.S. person except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.