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

OMDA Oil and Gas, Inc. Pursues Legal Action Against Young Oil Corp

Posted on: Thursday, 11 May 2006, 18:02 CDT

OMDA Oil and Gas, Inc. (OTC: OMOG) announces that it has initiated a lawsuit in Dallas County District Court against Young Oil Corporation, Young Operating Company, Anthony L. Young, and Chris Jeffries. All parties have been served via USPS certified mail. OMDA Oil and Gas, Inc. alleges that Young Operating Company breached its Contract "by failing to drill wells, failing to report regularly to OMDA, failing to provide a consistent right of first refusal to OMDA, failing to pay OMDA for the gas wells that Defendants reported to OMDA to be producing, and wholly failing to comply with the 'Time is of the Essence' provision."

A complete copy of this lawsuit can be viewed at http://www.omogoil.com/legal_updates.html.

OMDA Oil and Gas, Inc. entered into a long-term oil and gas play with Young Oil Corp on June 7th, 2005. OMDA Oil and Gas, Inc. invested $150,000 for an initial 20% interest in a six well program and first right of refusal on any other prospects on Young leases.

Adam Barnett, Chairman, stated, "After many delays in drilling, reporting, and producing requested documents on the part of Young Oil Corp., OMDA Oil and Gas, Inc. had no choice but to file litigation against the company and all involved parties. We have investigated the matter for several months, and we feel strongly we were misled as to the nature of these wells and that we were fraudulently induced in investing our initial $150,000.00." Barnett went on to say, "I have set a tone during my tenure as OMDA's chairman not to stand for any wrong-doings against our company or shareholders, and rest assured, OMDA will pursue this matter with great resolve."

About OMDA Oil and Gas, Inc.

OMDA Oil and Gas, Inc. and its wholly owned subsidiaries, OMDA Oil & Gas Management, Inc. and Texas OMDA Drilling & Operating, Inc. and OMDA Oil & Gas, Inc. (Texas) are in the business of oil and gas production and lease acquisition. Currently the Company owns average participation interests approaching 47%, in 355 producing and non-producing oil and gas wells in Louisiana and Texas, as well as 100% gross interest in an undeveloped 1,116 acre, horizontal play in the Panola Field, Panola County, Texas. Current acreage interests include a 15% working interest in 800 acres in Shelby County, TX and a Carried back-in working interest of at least 7.5% up to 37.5% in a 12 well work over play in the Concorde Dome Field in Andersen County TX, and is currently partnered up with Young Oil Corp, the largest Oil and Gas producer in Tennessee on 46,000 acres in North Central Tennessee, with an initial 20% interest in a six well program and a first right of refusal on any other prospects on the Young leases.

This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties including, but not limited to, statements relating to the future anticipated direction of the Oil and Gas Industry, plans for expansion, various business development activities, planned capital expenditures, future funding resources, anticipated sales growth and potential contracts. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

 Contact: OMDA Oil and Gas, Inc. Investor Relations 800-621-0113 IR@omogoil.comwww.omogoil.com

SOURCE: OMDA Oil and Gas, Inc.

Source: MARKET WIRE

More News in this Category