Alaska Pacific Energy Corp Issues Letter of Intent to Purchase Eagle Ford Shale Drill Site in McMullen County, Texas
MIAMI, April 16, 2013 /PRNewswire/ -- Alaska Pacific Energy Corp. (OTC PINK: ASKE) announced yesterday morning that it has issued a letter of intent to purchase 100% of the mineral rights on 40 acres in McMullen County Texas. The closing of the transaction is contingent upon final due diligence which is occurring now. The value of the purchase is found in the Eagle Ford Shale Payzone in addition to the fact that the transaction would give the Company 100% of the Oil and Gas Rights to all depths on the property. The proposed transaction is subject to a lease of a 77% working interest to a substantial oil company that has made several wells in the area. If this 'other' company does not drill on the property by the end of the year, they lose the lease and the Company (Alaska Pacific) can then either re-lease the working interest to another oil company or the Company could drill the wells for themselves.
Either way the company is in a position to earn substantial revenues and profits from the property. If the Company simply retains the Overriding Royalty of 23%, the Company would not be required to burden any of the drilling, completion or any other development costs. If the Company develops the property itself it would be responsible for the burden of the costs of the development but it would receive 100% of the royalties from any production on the property.
"As I have mentioned before, we have funders that are willing to get involved with deals for a piece of the deal, contingent upon the merits of the deal." Said Alaska Pacific Energy Corp. CEO Dominick Falso. "And this deal looks outstanding. Keep in mind that we have not received our final geology or due diligence docs yet but several large players have been drilling and completing wells all around us. I do not want to give any specifics until we tie the deal up but this one acquisition could produce hundreds of thousands of dollars per month in revenues in exchange for an investment of less than half a million dollars...We will release a little more information later in the week…I am very excited."
The Company has also been looking at other oil and gas opportunities both in Texas and other states and hopes to be making offers on at least two additional opportunities in the near future.
Safe Harbor Statement: This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934 that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company and the risks and uncertainties detailed from time to time in reports filed by the company with the Securities and Exchange Commission. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, the company's ability to raise necessary financing, retention of key personnel, timely delivery of inventory from the company's contract manufacturers, timely product development, product acceptance, and the impact of competitive services and products, in addition to general economic risks and uncertainties.
CONTACT: Alaska Pacific Energy Corp.
Dominick Falso, President (954) 793-0657
www.alaskapacificenergy.com (web site under revision; not totally up to date.)
SOURCE Alaska Pacific Energy Corp.