HOUSTON--(BUSINESS WIRE)--Aug. 7, 2006--Crimson Exploration Inc. (OTCBB:CXPI) today announced that its board of directors has approved a one for ten reverse stock split; and the Company has obtained the necessary consent of its majority shareholder to proceed with consummation of the exchange of one new share of common stock for each ten shares of old common stock. The Company filed a preliminary Schedule 14C Information Statement with the Securities and Exchange Commission today and is awaiting review, if any, of that statement before subsequent distribution of the definitive statement to shareholders of record at the close of business on July 31, 2006. Once the Schedule 14C is distributed to shareholders, and the stock split becomes effective no sooner than twenty days thereafter when the necessary state filing is made, shareholders may tender their old shares to Fidelity Transfer Company, our transfer agent, for new shares as provided for in the Information Statement. Also, once the Information Statement is distributed, the OTC Bulletin Board will issue the Company, before the stock split takes effect, a new ticker symbol under which the new shares will trade.
This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission ("SEC"). Such statements include those concerning Crimson's strategic plans, expectations and objectives for future operations. All statements included in this press release that address activities, events or developments that Crimson expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions Crimson made based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond Crimson's control. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Please refer to our filings with the SEC, including our Form 10-K for the year ended December 31, 2005 for a further discussion of these risks.
