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8-K - ADINO ENERGY CORP | v196448_8-k.htm |
Investor
Relations
Ken Maciora
Empire Relations Group,
Inc.
520 Broadhollow Road, Suite
303
Melville, NY 11747
(917) 670-9541
Adino@empirerelations.com
Adino
Energy Completes Acquisition of Eleven Oil and Gas Wells in West
Texas
HOUSTON,
September 13, 2010 -- Adino Energy Corporation (OTC Bulletin Board: ADNY) today
announced it has acquired PetroGreen Energy LLC, and Petro 2000 Exploration Co.
(together, "Petro Energy" or "Petro"), of San Angelo, Texas.
Petro
Energy is a licensed Texas Oilfield Operator currently operating 11 wells on two
leases covering approximately 300 acres in Coleman County, Texas. Petro also
owns a drilling rig, two service rigs and associated tools and
equipment.
The newly
acquired leases have mature production from eight proved developed producing
(PDP) wells and three saltwater disposal wells. The area has seen active oil
production from multiple pay zones since the 1950s. Reservoir pressure has
dropped over time; however, the Company believes that significant oil remains in
place. Adino plans a waterflood project, which management believes will
substantially increase both daily production and economically recoverable
reserves. Further, early results from a workover program on the producing wells
have been encouraging.
Under the
terms of the deal, Adino acquired 100% of the membership interests of Petro
Energy for 10,000,000 shares of Adino common stock; however, the newly issued
shares will remain in escrow until Adino’s stock price reaches $0.25 per share.
Should Adino's stock price fail to reach $0.25 within three years, there is a
clawback provision which is limited to Petro's drilling rigs and
equipment.
“We are
thrilled to have completed this acquisition as it marks Adino Energy’s reentry
into the oil & gas production industry,” commented Timothy G. Byrd, Sr.,
Adino Energy’s Chief Executive Officer. “With our fuel terminal operation
providing strong, stable cash flows, we are now focusing on oilfield
redevelopment opportunities where we believe we can create significant value for
our shareholders.
“Moreover,
I believe our shareholders will appreciate the sellers’ willingness to execute
the deal at $0.25 per share and agree to retain their stock in escrow until that
price is met. Not only is this a vote of confidence from experienced oil &
gas investors, it also significantly reduces dilution for existing
shareholders,” Byrd concluded.
Chairman
Sonny Wooley, a thirty-year veteran of the oil & gas industry and chief
architect of Adino’s strategy to reenter the upstream sector, commented,
“Recently, we conducted a workover to prepare a producing well for conversion to
an injection well. Simply cleaning out the tubing increased production
significantly – a good indication of potential results from a more aggressive
workover program.
"As we
proceed with our redevelopment of these leases, the cost advantages and
operational flexibility of owning our drilling and service rigs will become
apparent. We are largely insulated from price fluctuations in oilfield services
and scheduling problems that other small operators must contend with", Wooley
concluded.
About
Adino Energy Corporation, Inc.
Adino
Energy Corporation (OTCBB: ADNY) is an emerging oil & gas exploration and
production company focused on mature oilfield assets with significant
redevelopment, workover and enhanced oil recovery (EOR) potential. The Company
also owns a fuel terminal operation in the Houston, TX area.
Forward-looking
Statements
Statements made in this news release
relating to Adino's future production, expenses and
future capital projects and expenditures, and all other statements except
statements of historical fact, are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These statements are based on assumptions and estimates
that management believes are reasonable based on currently available
information; however, management's assumptions and the Company's future performance are both
subject to a wide range of business risks and uncertainties and there is no
assurance that these goals and projections can or will be met. Any number of
factors could cause actual results to differ materially from those in the
forward-looking statements, including, but not limited to, the timing and extent
of changes in oil and gas prices, the timing and results of drilling and other
development and exploration activities, the availability and cost of obtaining
drilling equipment and technical personnel, risks associated with the
availability of acceptable transportation arrangements and the possibility of
unanticipated operational problems, delays in completing production, treatment
and transportation facilities, higher than expected production costs and other
expenses, and pipeline curtailments by third parties. The Company's projects are subject to
numerous operating, geological and other risks and may not be successful. All
forward-looking statements are made only as of the date hereof and the
Company undertakes no obligation to
update any such statement. Further information on risks and uncertainties that
may affect the Company's operations and financial
performance, and the forward-looking statements made herein, is available in the
Company's filings with the Securities and
Exchange Commission, which are incorporated by reference as though fully set
forth herein.