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8-K - Glen Rose Petroleum CORP | v176416_8k.htm |
Glen
Rose Petroleum Corporation Receives $4,350,000 Funding
To
Develop Wardlaw Leases
Katy,
Texas, March 5, 2010 -- Glen Rose Petroleum Corporation (NASDAQ CM: GLRP), Katy,
Texas, has closed on a funding totaling $4,350,000 from Iroquois Capital
Opportunity Fund, LP (“ICO”). The transaction consists of $3,350,000
in secured convertible notes and warrants and $1,000,000 for the purchase of an
undivided 12.5% working interest in the non-producing portions of its leases in
the Wardlaw Field in Edwards County, Texas.
Andrew
Taylor-Kimmins, President and Chairman of the Company said “The investment led
by ICO brings to Glen Rose so much more than just the finance to develop the
Wardlaw Field. ICO provides Glen Rose with a highly sophisticated
financial partner with a depth of oil and gas development knowledge and
experience.”
Luis
Vierma, Partner of ICO and former Vice President of Exploration and Production
for Petroleos de Venezuela, S.A. (“PDVSA”) said “The Wardlaw Field and Glen Rose
represent a promising investment for ICO, where we can bring into play both our
capital and oil and gas expertise to bring this undeveloped and undervalued
asset to its full potential.”
The Company has retained
Nomad Energy, Inc. and Iromad LLC to advise and support field service and
development at the Wardlaw Field with access to state of the art enhanced oil
recovery technologies. Nomad Energy is headed up by Dan Morrison who
said “Nomad Energy is dedicated to furthering and developing the science,
technologies, and strategies for extracting hydrocarbons from mature and
unconventional reserves. Our belief is that the solution for finding the energy
needs for tomorrow is rooted as much in the reserves found in the past as it
does from flush production to be found in the future. The Wardlaw field project
is the first step in this direction. It is an exciting and challenging endeavor
whose success will have far reaching impact to other fields and
regions.”
Further,
the Company has hired Ruben Alba to be its Chief Operating Officer starting
March 15, 2010. Mr. Alba received his Chemical Engineering Degree
from New Mexico State University. His career in the oil and gas industry
has spanned over 13 years with Halliburton Energy Services and Superior Well
Services. He holds two patents in unique completion technologies and is
adept to the challenges of unconventional reservoirs. Mr. Alba brings an
intelligent, energetic and unique approach to complex reservoir problems
involving geochemistry, geomechanics, surface logistics and environmental
concerns. During his career he has successfully managed safe and
profitable operations groups. Mr. Alba has introduced new and novel
technologies involving new fluid chemistry as well as completion processes to
reservoirs requiring cutting edge technology. His most recent experience
has been the management of technical and laboratory staff in both Halliburton
Energy Services and Superior Well Service.
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Andrew
Taylor-Kimmins said “With the team and the finance now in-place we intend to
immediately commence the re-work of up to 57 well bores already drilled on the
Wardlaw Field with an initial target of increasing production north of 200
barrels of oil per day.”
As
previously announced in January, the Company received a delisting notice from
The NASDAQ Stock Market LLC (“NASDAQ”) due to the Company’s non-compliance with
NASDAQ’s $1.00 per share bid price requirement. In response, the Company
requested a hearing before a NASDAQ Listing Qualifications Panel to appeal the
Staff’s delisting determination. On March 4, 2010, the Company advised NASDAQ
that it is withdrawing its appeal and request for continued listing.
Accordingly, NASDAQ will suspend trading of the Company’s securities effective
with the open of business on Monday, March 8, 2010.
Following
the suspension of trading on NASDAQ, the Company expects that its common stock
will be quoted on the OTC Bulletin Board (the “OTCBB”), which is operated by
FINRA. In that regard, the Company has been advised by a market maker that it
has filed the necessary application with FINRA to quote the Company’s securities
on the OTCBB. It is expected that the application will be cleared by
FINRA so as to facilitate trading on the OTCBB beginning on Monday, March 8,
2010. In the event, the application is not cleared by FINRA in time
for trading on Monday, the Company’s securities will be eligible for quotation
and trading on The Pink Sheets.
Andrew
Taylor-Kimmins said “while we are excited about the prospects for the business
going forward, particularly now that we have completed our financing, our
decision to leave NASDAQ is based on our view that, at this stage, the effort to
maintain compliance with the NASDAQ listing standards would be an unnecessary
distraction for management. We intend to continue to publicly file our periodic
reports with the SEC and we will re-evaluate the need for a stock exchange
listing as our business develops.”
The Glen
Rose Petroleum Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5339
About
Glen Rose Petroleum Corporation
Glen Rose
Petroleum Corporation, formerly United Heritage Corporation, was founded in 1981
and is focused on the development of on-shore US oil and gas assets. Glen Rose
has four leases covering 10,500 acres in the Wardlaw Field located in Edwards
County, TX. The oil is categorized as “medium crude,” the deposits are in the
light gravity range of heavy oil at 18-22 API gravity.
www.glenrosepetroleum.com
About
Iroquois Capital Opportunity Fund, L.P.
Iroquois
Capital Opportunity Fund, L.P. (“ICO Fund”) is a private equity fund focused on
investments in the oil and gas industry. ICO Fund invests in low risk oil and
gas assets and in technologies that increase production, improve recovery factor
and reduce costs to apply these technologies to change the economics of the
targeted assets. The fund is managed by a seasoned team that includes former
senior national oil company executives, former senior oil service executives,
oilfield technology venture capitalists and financiers experienced at
structuring investments in the oil and gas industry.
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www.icofund.com
About
Nomad Energy, Inc.
Nomad
Energy, Inc. is an independent oil and gas consultancy, established by a group
of highly experienced and innovative oil and gas professionals in Houston,
Texas. These professionals developed their knowledge base while working on
projects focused on the development of unconventional reserves, difficult
hydrocarbons and mature assets for major operators and service companies. They
achieved success in these areas as a result of applying unique technological
solutions coupled with effective project management. These professionals then
aggregated their skill sets to form Nomad Energy, Inc. Nomad applies an
extensive understanding of oilfield service capabilities and limitations in
order to efficiently execute within a time and cost sensitive
environment.
www.nomadenergy.com
About
Iromad LLC
Iromad
was formed through the convergence of veteran oil and gas professionals,
innovative technologists, leading entrepreneurs, and experienced investment
professionals. Iromad’s vision is to facilitate the delivery of technologies for
the enhanced development of mature assets and unconventional hydrocarbons,
providing cutting-edge solutions to issues faced by national oil companies and
independent petroleum producers. Iromad focuses on solutions that will increase
recoverable reserves, enhance production, and reduce lifting costs. This demands
a long-term perspective, breadth and depth of expertise, and solid project
management in order to outlast the cyclic nature of oil and gas commodity
markets.
About the
OTCBB
The OTCBB
is a regulated quotation service operated by FINRA that displays real-time
quotes, last-sale prices, and volume information in OTC equity securities. It is
a quotation medium for subscribing members, not an issuer listing
service. An OTC equity security generally is any equity that is not
listed or traded on a national securities exchange. OTCBB securities include
national, regional, and foreign equity issues, warrants, units, ADRs, and Direct
Participation Programs. More information is available at http://www.otcbb.com.
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About the
Pink Sheets
The Pink
Sheets is a centralized quotation service that collects and publishes market
maker quotes for OTC securities in real time. Pink Sheets is neither a
Securities and Exchange Commission Registered Stock Exchange nor a
Broker-Dealer. More information is available at http://www.otcmarkets.com.
Private
Securities Litigation Reform Act Safe Harbor Statement: All statements in this
press release that are not statements of historical fact are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995 as codified in Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934, including any projections of earnings,
revenue, cash or other financial items, any statements of the plans, strategies,
and objectives of management for future operations, any statements regarding
future economic conditions or performance, statements of belief and any
statements of assumptions underlying any of the foregoing. These statements are
based on expectations and assumptions as of the date of this press release and
are subject to numerous risks and uncertainties, which could cause actual
results to differ materially from those described in the forward-looking
statements. The risks and uncertainties include the risks and uncertainties
inherent in oil and gas exploration, production, and development, and market
conditions, particularly energy prices and demand for oilfield equipment and
services and the risks inherent in having limited capital resources. Glen Rose
Petroleum Corporation assumes no obligation to update these forward-looking
statements to reflect future events or actual outcomes and does not intend to do
so.
Contact:
|
Glen
Rose Petroleum Corporation
|
Andrew
Taylor-Kimmins, President
(832)
437-4026
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