Tiger Acquires 30% Working Interest in Producing Oil Property
Posted on: Monday, 9 February 2009, 08:00 CST
The project consists of 7 leases covering approximately 323 net acres and has over 50 existing well bores. The acquisition was made from Wellington Capital, a portfolio management company with substantial investments in the Oil and Gas sector.
The GP project is deploying Enhanced Secondary Recovery (ESR) methods and know-how to rework and return to production some 40 existing wells. The GP project is in three phases. The first phase, which is under way and already yielding production results, consists of selecting wells for rework and performing cleaning, fracing and acid treatments, essentially turning the fields back on. The second phase will consist of perforating other existing Zones to get additional production from existing reserves behind pipes, as well as the use of a number other ESR methods to increase production. Phase three envisions additional drilling on the property to either go deeper to other zones or establish additional offset wells.
This acquisition represents a new departure in an effort to re-create value for Tiger's shareholders and position the company for future growth. With the market for ethanol at an all-time low and investor sentiment toward that industry being negative at present, the board and management concluded that the Hami project was not going to result in a viable business even if more capital was available, and thus decided to identify new opportunities for Tiger.
Although this acquisition takes the Company in a different direction, still in the energy field, it is undertaken with the goal of creating value for its stakeholders. The oil market being at a many year low has created opportunities in that industry. The present acquisition of a working interest in the GP Project was made on favorable terms and should bring good value in the future, benefiting our stakeholders and management is looking at other opportunities in the sector.
Forward-Looking Statements
This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on currently available competitive, financial and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain. The Company cannot provide assurances that the matters described in this press release will be successfully completed or that the Company will realize the anticipated benefits of any transaction. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to: global economic and market conditions; the war on terrorism and the potential for war or other hostilities in other parts of the world; the availability of financing and lines of credit; successful integration of acquired or merged businesses; changes in interest rates; management's ability to forecast revenues and control expenses, especially on a quarterly basis; unexpected decline in revenues without a corresponding and timely slowdown in expense growth; the Company's ability to retain key management and employees; intense competition and the Company's ability to meet demand at competitive prices; relationships with significant suppliers and customers; as well as other risks and uncertainties, including but not limited to those detailed from time to time in the Company's SEC filings. The Company undertakes no obligation to update information contained in this release. For further information regarding risks and uncertainties associated with the Company's business, please refer to the risks and uncertainties detailed from time to time in the Company's SEC filings.
To learn more about our company please visit our web site at www.tigerethanol.com/
SOURCE Tiger Renewable Energy Limited
Source: PR Newswire
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