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Coral Energy Signs Definitive Agreement to Acquire Operating Assets of Avista Energy

Posted on: Tuesday, 17 April 2007, 18:00 CDT

HOUSTON, April 17 /PRNewswire/ -- Shell subsidiary, Coral Energy Holding, L.P. and certain of its subsidiaries (Coral Energy), today announced that it has signed a definitive agreement to acquire substantially all operating assets of Avista Energy, Inc. Headquartered in Spokane, Washington, Avista Energy is the energy marketing and trading subsidiary of Avista Corporation .

The acquisition agreement also includes the operating assets of Avista Energy Canada, Ltd., which will be integrated into Coral Energy Canada Inc., a subsidiary of Coral Energy Holding, L.P. The transaction is expected to close by late second quarter or early third quarter 2007, following the completion of certain contractual requirements and the receipt of necessary regulatory approvals.

"We are pleased to finalize this agreement with Avista Energy," said Mark Hanafin, president and chief executive officer of Coral Energy. "We believe Avista Energy's strong presence in the Pacific Northwest and western Canada complements our existing portfolio in North America. We look forward to increasing our scale, resources and experience through this transaction, which will allow us to offer a broader portfolio of value-added services to our customers in the region."

Shell Trading is a global business network integrating the worldwide energy trading activities of the Royal Dutch Shell group of companies, of which Coral Energy Holding, L.P. and its subsidiaries ("Coral Energy") are an integral part. With headquarters in Houston, Texas, and trading and marketing offices located across North America, Coral Energy offers a comprehensive portfolio of energy-related products and services associated with natural gas and power marketing and trading. Coral Energy markets and trades natural gas, wholesale power and risk products with counterparties and customers across North America. Its customers include commercial and industrial end users, utilities, producers, generators and aggregators.

Shell Oil Company, including its consolidated companies and its share in equity companies, is one of America's leading oil and natural gas producers, natural gas marketers, gasoline marketers and petrochemical manufacturers. Shell, a leading oil and gas producer in the deepwater Gulf of Mexico, is a recognized pioneer in oil and gas exploration and production technology. Shell Oil Company is an affiliate of the Shell Group, a global group of energy and petrochemical companies, employing approximately 109,000 people and operating in more than 140 countries and territories.

Disclaimer statement:

This announcement contains forward-looking statements, that are subject to risk factors associated with the oil, gas, power, chemicals and renewables business. It is believed that the expectations reflected in these statements are reasonable, but may be affected by a variety of variables which could cause actual results, trends or reserves replacement to differ materially, including, but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, risks associated with the identification of suitable potential acquisition properties and targets and the successful negotiation and consummation of transactions, the risk of doing business in developing countries, legislative, fiscal and regulatory developments including potential litigation and regulatory effects arising from recategorisation of reserves, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates.

Please refer to the Annual Report on Form 20-F for the year ended December 31, 2005 (as amended) for a description of certain important factors, risks and uncertainties that may affect the Shell Group's businesses. Neither Royal Dutch Shell plc nor any member of the Shell Group undertakes any obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or other information.

Cautionary Note to US Investors:

The United States Securities and Exchange Commission ('SEC') permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation, such as "expected producible resources" and "amount of reserves we expect to produce", that the SEC's guidelines strictly prohibit us from including in filings with the SEC.

Shell Trading

CONTACT: Shell Media Line, +1-713-241-4544

Web site: http://www.shellus.com/

Source: PRNewswire

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