Abby, Inc. Executes An Option to Acquire Up to a 75% Working Interest in Oil
Wells Located in Richardson County, Nebraska
CALGARY, Alberta, Nov. 5, 2012 (GLOBE NEWSWIRE) -- Abby, Inc. (OTCBB:ABBYD)
acquired an option from Black Star 231 Corporation to purchase up to a 75%
working interest in a two well oil drilling program known as the "Rose Dome
Program". The purchase price for the option was $15,000. The oil and gas
leaseholds are located in Richardson County, Nebraska.
The Agreement calls for Abby, Inc. to purchase up to 3 of 4 Participation
Units in the Rose Dome Prospect, which if all the Units are purchased, would
give Abby, Inc. a 75% stake in the oil wells. Two wells are planned
initially. The Operator, Black Star 231 Corp., will be purchasing one Unit.
Abby, Inc. may extend the option period until February 24, 2013 by making an
additional $80,000 non-refundable deposit to Black Star on or before December
24, 2012. Neither the $15,000 nor $80,000 payment shall be credited to Abby
in order to participate in the Rose Dome Program.
The first cash call will be for $138,650 per Unit. If Abby, Inc. chooses to
acquire its 75% working interest the first cash call will total $415,950.
If both wells are completed for production there will be a second cash call of
$133,500 per Unit or $400,500 for Abby, Inc. to retain its 75% working
interest. For each well not completed for production in this drilling program
the second call amount is reduced by $66,775 per Unit of participation.
Abby does not currently have sufficient funds to acquire a 25% working
interest which represents the minimum number of units which can be purchased
In addition to participation in the two well drilling program, Abby has been
given the option to participate in other drilling programs on five adjoining
parcels. Non-refundable fees to exercise these options total $5,000 for each
drilling program and payments are required in November and December 2012. The
entire group of parcels comprise 2100 acres.
The Rose Dome project is located within the State Line Prospect and is 3 miles
south of the Dawson oil field and 10 miles north of the McClain oil field,
both of which lie along parallel faults that extend between the two producing
oil fields. The Dawson field has produced 2,000,000 barrels of oil, and the
McClain oil field, which has produced 3,500,000 barrels of oil. The State Line
prospect holds the potential for a similar multi-million barrel discovery,
based on the independent geologist who prepared the initial report for the
lease holder, Black Star 231 Corporation.
In that geological report, the geologist noted that, "The State Line prospect
is bounded on the north by a normal fault with 70 feet or more of vertical
offset, and is bounded on the east by a north-south normal fault with 150 feet
or more of vertical offset. The north-south fault is uplifted on its west side
forming the east limit of an anticlinal axis, creating a classic oil trap."
Black Star 231 Corp. outlined the fact that there are three existing oil wells
on the West side of the State Line field in its geological report; one on the
Northwest side, which was last operated in 1933 and two on the Southwest side
that are currently producing approximately 20 bbls per day.
"We believe that the existence of producing oil wells bordering the six
parcels we may option is a strong indication of productive ground," said Abby,
Inc. President Tom Forzani.
Mr. Forzani went on to say that, "Our focus is to work with seasoned oil
operators that can provide low-risk prospects, like the State Line field. We
believe that Black Star 231 Corporation meets our criteria of experience and
that they will be a strong partner for the Rose Dome parcel and other
About Abby, Inc.
Abby, Inc. (OTCBB:ABBYD) is an oil and gas exploration and development company
focused on developing partnerships with experienced oil & gas operators
throughout the United States and Canada to identify low-risk prospects to
explore and develop into producing properties.
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The information contained in this press release contains "forward-looking
statements," within the meaning of the Private Securities Litigation Reform
Act of 1995, Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. A
forward-looking statement is one which is based on current expectations of
future events or conditions and does not relate to historical or current
facts. These statements include various estimates, forecasts, projections of
Abby, Inc.'s future performance, statements of Abby, Inc.'s plans and
objectives, and other similar statements. Forward-looking statements include
phrases such as "low-risk", "expects," "anticipates," "intends," "plans,"
"believes," "predicts," "estimates," "assumes," "projects," "may," "will,"
"will be," "should," or similar expressions. Although Abby, Inc. believes that
its current expectations are based on reasonable assumptions, it cannot assure
that the expectations contained in such forward-looking statements will be
achieved. Forward-looking statements involve risks, uncertainties and
assumptions which could cause actual results to differ materially from those
contained in such statements. The risks, uncertainties and other factors that
might cause actual results to differ materially from Abby, Inc.'s expectations
are set forth in the "Forward-Looking Statements," "Risk Factors" and other
sections of Abby, Inc.'s annual report on Form 10-K for the last fiscal year
and Abby, Inc.'s other filings with the Securities and Exchange Commission.
Investors should not place undue reliance on the forward-looking statements
contained in this press release, as they speak only as of the date of this
press release, and Abby, Inc. expressly disclaims any obligation or
undertaking to publicly release any updates or revisions to any
forward-looking statements contained herein.
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