CGrowth Capital, Inc. Closes Escrow on Wyoming Oil Leases
CGrowth Capital, Inc. Closes Escrow on Wyoming Oil Leases
West Salt Creek Property Boarders Anadarko Reserve
SILVERDALE, WA -- (Marketwired) -- 10/29/13 -- CGrowth Capital, Inc. (OTC Pink: CGRA) (the "Company") is pleased to announce that it has closed escrow and completed the purchase of 2,064 acres of Wyoming oil leases with 65 offset drilling locations from West Salt Creek, Inc. ("WSC"). The leases include active wells with current production along with the associated fixtures, pumps, vehicles, and tanks for the current field operation. Located in the Powder River Basin, the property boarders and shares the same physical characteristics as Anadarko Petroleum's Salt Creek project (thus the West Salt Creek name).
"Success!" stated Bill Wright, CEO of CGrowth Capital, Inc. "A great deal of time and energy by everyone involved has paid off. Again, I want to personally thank the West Salt Creek, Inc. management, staff, and consultants, as well as our internal staff and partners, for their professionalism in closing this transaction timely. It is rewarding to see everyone smiling at the conclusion of our hard work."
Mr. Wright continued, "The closing of this transaction does much more for us than proving our diligence in completing transactions. We truly have acquired an asset with yet untapped potential -- both in terms of the fields and wells themselves, as well as the team of people coming on board. To really appreciate what the Company has you need to actually see it. Being able to throw a rock from our property to one of the biggest Anadarko reserves in North America is really quite special."
Montgomery George, President of West Salt Creek, Inc., stated, "It is amazing to see how much a relatively unknown company has in the works and how quickly they are able to get things done. CGrowth Capital's enthusiasm for this project, as well as their unwavering commitment to their current mining project, has been very infectious. We are excited to be helping the company moving forward and to be a part of the future success. While the immediate daily production from the oil fields is helpful, we are already seeing results from the revitalization work on the existing wells. Our first well workover increased production from a half barrel a day to over 22 barrels of oil per day for a single well. The next 6 months should be very exciting."
Initial net working interest on the existing wells prior to additional workover and drilling is estimated to be 8-10 BOPD. A revitalization plan for the existing wells anticipates increasing the production over time for the Company's working interest. A group of wells are currently in a revitalization plan with a third party in the field, which the Company will maintain a 20% working interest in. The revitalization plan does not require any capital investment by the Company. Geological reports for the area are estimating oil potential up to seven million barrels of oil.
The Effective Date of the purchase has been set as September 30, 2013 and will be reflected in the Company's third quarter financials. The purchase price for the property leases, well interest, and equipment is $3,900,000. The Company paid for the acquisition through the issuance of a) $3,000,000 in Preferred A stock (which amounted to 300,000 shares of Preferred A stock valued at $10.00 per shares). The shares have a two year lock up, may be called by the Company during that time period at the stated price plus a 6% cumulative annual premium, and may be converted to common shares after the hold period at a 20% discount to market; and b) $900,000 in Common stock (which amounted to 9,000,000 shares of Common stock valued at $0.10 per share). The common stock is subject to a 1 year lock up, a metering and block trade restriction, and Rule 144. At no time may the seller own more than 4.9% of the Commons shares of the Company. Additionally, the Company issued Warrants to the seller for the purchase of 4,500,000 shares of Common stock. The Warrants have a strike price of $0.50 per share, expire on the fifth anniversary of the closing, and are to be paid for in cash.
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For more information about CGrowth Capital, visit their website: http://www.CGrowthCapital.com
About CGrowth Capital, Inc.:
CGrowth Capital, Inc. serves as a holding company for businesses and assets focused on all aspects of mining, minerals, and exploration. The processing of metal ore mining and oil and gas exploration both represent multi-billion dollar market opportunities which are capitalized through processing, sales, contracting and licensing of assets. CGrowth Capital's services and solutions are designed to assist land owners with monetizing undervalued assets by bringing commodities such as gold, silver, oil and gas, and other minerals to market. CGrowth Capital will focus on acquiring, leasing, or "claiming" land assets, while also providing partners and affiliates with management services, capital, contract management and logistical services necessary for the successful execution of mining exploration and operations.
Statements about the Company's future expectations and all other statements in this press release other than historical facts, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. The above information contains information relating to the Company that is based on the beliefs of the Company and/or its management as well as assumptions made by and information currently available to the Company or its management. When used in this document, the words "anticipate," "estimate," "expect," "intend," "plans," "projects," and similar expressions, as they relate to the Company or its management, are intended to identify forward-looking statements. Such statements reflect the current view of the Company regarding future events and are subject to certain risks, uncertainties and assumptions, including the risks and uncertainties noted. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended or projected. In each instance, forward-looking information should be considered in light of the accompanying meaningful cautionary statements herein. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, the impact of competitive services and pricing and general economic risks and uncertainties. The Company disclaims any obligation to update or revise any forward-looking statements.
Investor Inquiries: CGrowth Capital, Inc. 888-218-2472