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ABL

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Share Name Share Symbol Market Type
TSXV:ABL TSX Venture Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0 -

Agrotech Closes West Texas Acquisition and Provides Update on Reactivation

25/01/2010 5:46pm

Marketwired Canada


Agrotech Greenhouses Inc. (TSX VENTURE:AGV.H) (the "Company") wishes to provide
an update regarding its Reactivation on the TSX Venture Exchange (the
"Exchange") first announced in its news release dated July 27, 2009 and recently
updated in the Company's news release dated December 29, 2009.


The Greater Joe Mill Project - Acquisition

Further to the Company's news release dated December 29, 2009, the Company is
pleased to announce that Contact USA has closed its acquisition of the Greater
Joe Mill Project in the Permian Basin of West Texas. It has acquired a 25% net
working interest in approximately 4,700 of the seller's net mineral acres within
the project area by committing to pay for its proportionate share of the
drilling cost of the first four (4) wells and paying for its share of the
associated mineral leases and existing salt water disposal ("SWD") well.
Consequently, Contact USA has paid the seller a total of US$689,902 for its
share of the estimated drilling costs of the first well, mineral leases and SWD
well. The drilling of the first well is expected to commence within the next
thirty days. Drilling of the subsequent three wells is expected sometime in the
second quarter of 2010. A finder's fee is payable by Contact USA in respect of
this transaction.


The Company's Name Change and Consolidation

In conjunction with the 1 for 3 consolidation of the Company's shares, which has
been approved by shareholders, it is now proposed to change the Company's name
to "ARCHER PETROLEUM CORP."


Financing

The Company is not proceeding with the financing announced in its news release
of July 27, 2009. Instead, the Company shall conduct a private placement of up
to 6,667,000 post-consolidation shares at Cdn$0.45 each to raise Cdn$3,000,000
at the closing of the Reactivation, subject to regulatory approval. The Company
reserves the right to increase this financing by up to 20%. Finders' fees will
be payable in connection with the placement.


ABL Agreement

The Company has entered into a management services agreement with ABL Energy
Partners LLC ("ABL"), a leading, Houston-based, oil and gas consulting firm
specializing in assisting oil and gas companies maximize shareholder value. ABL
has long-standing relationships with industry partners and participants.
Pursuant to the agreement, ABL has agreed to provide the Company with
operational, business development and corporate finance services, and will
introduce and assist the Company in the acquisition of new oil and gas projects.



Stock Option Grant

The Company is pleased to announce that pursuant to its Stock Option Plan and in
conjunction with the closing of the Company's Reactivation and subject to
shareholder and regulatory approval of the Reactivation, the Company has granted
options to purchase up to 600,000 post-consolidation shares of the Company
exercisable at $0.34 per share for a term of five years from the closing date of
the Reactivation.


Cautionary Statements

Completion of the Reactivation is subject to a number of conditions, including
Exchange acceptance, shareholder approval, and completion of the financing. The
Reactivation cannot close until the required shareholder approval is obtained.
There can be no assurance that the Reactivation will be completed as proposed or
at all. Investors are cautioned that, except as disclosed in the Filing
Statement being prepared in connection with the Reactivation, any information
released or received with respect to the Reactivation may not be accurate or
complete and should not be relied upon. Trading in the securities of the Company
should be considered highly speculative.


The TSX Venture Exchange has in no way passed upon the merits of the proposed
transactions and has neither approved nor disapproved the contents of this news
release.


ON BEHALF OF AGROTECH GREENHOUSES INC.

Colin Bowkett, Director

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