Black Gold Gas & Oil to Acquire Four Oil & Gas Properties In Midwest
Black Gold Gas & Oil, Inc. (Pink Sheets:BKGD) today announced that they have signed a letter of intent with Jones & Buck Development for the acquisition of approximately 41 gas and oil leases in Kansas and northern Oklahoma. The oil and gas leases encompass approximately 8,000 acres in the Cherokee basin of southeastern Kansas including all production, all oil and gas properties and related mineral rights (“collectively the leases”). The leases are currently producing approximately $200,000 per month. With the reworking of some of the wells along with the 2 new offset oil wells and continuous drilling, Black Gold expects that production could increase significantly over the next several months.
As part of its preliminary due diligence, a site visit of the properties was conducted by a company officer in which he viewed the production, the equipment and the properties. In accordance with the Letter of Intent due diligence is to be completed and a final Definitive Purchase Agreement is to be drawn up within a 90 day time period.
Upon the signing of the Definitive Purchase Agreement the purchase price of the acquisition is $4.25 million. This includes current production along with production equipment, which consists of pumping units, down hole equipment, separators, storage tanks and other misc. equipment such as salt water pumps, gas meters, etc.
In connection with the LOI, the company has retained the services of Mr. Bill Foster, President of Manhattan IP, to conduct the due diligence necessary for the acquisition. Mr. Foster has 40 years of experience in the gas and oil business and his resume can be found on Black Gold’s web site.
Black Gold is also in the process of hiring an auditing firm out of Oklahoma with a history and background of auditing oil and gas leases and equipment to assist Mr. Foster in his due diligence.
“If the acquisition is completed, the 2 new offset wells, the recompletion of several of the oil wells and the drilling of several new wells should substantially increase the production of leases,” reported the company officer who visited the site.
Black Gold Gas & Oil, Inc. is an independent natural resource company focused on the exploration and development of prolific oil and gas properties and valuable timberlands.
Forward-Looking Statements: This press release may contain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the current expectations of the management of Black Gold Gas & Oil, Inc. only, and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Factors which could cause or contribute to such differences include, but are not limited to, factors detailed in the Company’s Securities and Exchange Commission filings; economic downturns affecting the operations of the Company, and the need for adequate financing to achieve the new strategic plans and to complete management’s overall plans and objectives. Black Gold Gas & Oil, Inc. undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. For a more detailed description of the risk and uncertainties affecting Black Gold Gas & Oil, Inc., reference is made to Black Gold Gas & Oil, Inc.’s reports filed from time to time with the Securities and Exchange Commission.