• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

IAS Communications, Inc. Obtains a Letter of Intent to Purchase a Producing Oil & Gas Well in Tennessee

Posted on: Tuesday, 15 November 2005, 09:00 CST

IAS Communications, Inc. (OTCBB:IASCA) is pleased to announce that a Letter of Intent to purchase a 100% interest in a producing oil well, subject to a 37.5 net revenue interest (NRI). The terms and conditions will be announced after the geological report is completed subject to board of directors' approval and a favourable geological report; the well is located in Overton, Clay County, Tennessee. Details of the geological report will be announced after it is completed.

IAS has also negotiated a definitive oil and gas drilling and operating letter of intent for first refusal to drill up to five (5) offset well locations, the cost of drilling each well will be US$150,000 and the completion costs will be US$25,000 per well. IAS will earn a 75% net revenue interest in each well location.

According to James D. Washburn, a petroleum geologist familiar with the wells located in Clay County, Tennessee, "An oil field in Overton, Clay County, Tennessee, east of the land IAS has signed the letter of intent on, is currently producing up to several hundred barrels of oil per day, with the initial production exceeding 2000 BBLS per day."

James D. Washburn recommends a total of five oil and gas zones to be tested in each well. The operator of the wells will be Young Oil Corp. of Kentucky. Mr. Anthony Young, the President and Secretary of Young Oil Corp., was voted outstanding oil man in the Kentucky -- Tennessee Oil and Gas Association in 1999 and in 2005.

ABOUT YOUNG OIL CORP.

Young Oil Corporation was founded in 1996 and is recognized today as Tennessee's top producer and a leading force in the exploration and production of oil and natural gas in the Appalachian Basin. Young Oil Corporation is an independent exploration and production company focused on the marketing of oil and natural gas from reserves in Southern Kentucky and Tennessee. The company's principal business includes the acquisition of natural gas and oil properties with proven reserves, and the drilling of development and exploratory wells. The company continues to evaluate potential acquisitions, screens drilling prospects for economic and technical merit, and meets al filing requirements to local, state and federal agencies. In selecting opportunities for development, management employs a conservative philosophy of operations while using the latest scientific methods available, obtaining a second opinion to verify their findings. The use of recognized independent engineering and geological consulting firms enhances the chance of success in an industry know for its high risk.

ON BEHALF OF THE BOARD OF DIRECTORS

John Robertson

President

Statements in this press release regarding IAS Communications, Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties, including the impact of competitive products and pricing, the need to raise additional capital, uncertain markets for the Company's products and services, the Company's dependence on third parties and licensing/service supply agreements, and the ability of competitors to license the same technologies as the Company or develop or license other functionally equivalent technologies.

Source: Business Wire

More News in this Category