Lighthouse Petroleum, Inc., Enters Into Agreement With HCE Operating, LLC To Purchase Oil And Gas Producing Leases In Haskell County, Texas Geological Report Indicates An Estimated Economic Value Of $13,500,000
LEVELLAND, Texas, July 16, 2012 /PRNewswire/ -- Lighthouse Petroleum, Inc. (OTC Pink: LHPT), is pleased to announce that it has entered into an exclusive Memorandum of Understanding ("MOU") with HCE Operating, LLC ("HCE") to purchase a 100% Working Interest and 75% Net Revenue Interest in leases, wells, well bores and equipment for the Reames/Masterson Production located within the Lindsea Bea Field of Haskell County, Texas.
Lighthouse has negotiated to purchase the leases, wells and equipment from HCE for One Million Two Hundred Thousand Dollars ($1,200,000.00). Based on a 1998 geological report, indications are that the leased property contains a producing zone called the Lindsea Bea Conglomerate. The report states that there are Four Hundred Seventy-Two Thousand (472,000) proven undeveloped barrels ("PUD") of oil, less approximately Twenty-Two Thousand (22,000) barrels produced since that date, supporting an economical assumption value of Thirteen Million Five Hundred Thousand Dollars ($13,500,000.00). It is agreed that the report will be updated during the verification process. The MOU and the 1998 geological report were posted as a Supplemental Information Disclosure on OTC Markets on July 13, 2012.
Currently there are Thirteen (13) wells, Two (2) of which are active, producing approximately Six (6) BOE of oil and Twenty-Two (22) MCF of gas per day. In addition to the purchase cost, the MOU states that Lighthouse will incur additional costs to extract the oil and gas and will bear all the risk associated with the recovery. The additional costs for extraction are estimated to not exceed One Million Dollars ($1,000,000.00).
This oil and gas evaluation of reserves report is based solely on the reserve of the Lindsea Bea Conglomerate. The zone is located at a depth of 4,990ft – 5,018ft. The Hendrick Ranch Field, which is the field where these wells are located, is a multi-pay area that contains wells producing from nearby intervals identified as the Lindsea Bea Conglomerate, Bend Conglomerate, Caddo Lime, Strawn Sands, Palo-Pinto Lime, Patio Sands, Lower King and Cook Sand formations. The Lindsea Bea Conglomerate formation is from the Lower Pennsylvanian System, a major producing deltaic movement within the study area. All wells in this project have multiple pay-zones identified in their logs via dual-density logs, dual spectrum logs, Halliburton producing zone log analysis reports, and drilling mud logs.
The MOU stipulates that Lighthouse retains the right to have additional partners it deems necessary to complete this transaction.
It is noteworthy to mention that on June 18, 2012 in a press release, Mr. Todd Violette expanded his current role as CEO of Lighthouse Petroleum and was appointed CEO and became the controlling shareholder of Paradigm Oil and Gas, Inc., a public company trading under the symbol (OTC Pink: PDGO). Mr. Violette looks forward to exploring and maximizing both companies' resources during and upon completion of this transaction.
About Lighthouse Petroleum, Inc.
Lighthouse Petroleum, Inc. is a development stage junior oil and gas company. Lighthouse's initial focus will be on acquiring abandoned wells and land leases believed to still have sustainable development opportunities. Lighthouse believes the use of modern technology will enable the company to reduce its risk in the initial phase of development and open up new opportunities. Lighthouse plans to create a base cash flow from reentering these wells and establishing the network to acquire additional land asset in targeted areas. Lighthouse is a growth orientated junior oil and gas company that trading on the OTC markets under the symbol "LHPT".
About Paradigm Oil and Gas Inc.
Paradigm Oil and Gas Inc. (OTC Pink: PDGO) identifies and acquires energy properties with previously discovered known oil and gas reserves that have not either been fully produced from, or fully developed and defined. For more information about Paradigm Oil & Gas, visit the website at www.ParadigmOilInc.com.
Forward Looking Statement
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks. Lighthouse Petroleum, Inc. is an exploration company with limited experience in the oil and gas industry. At the time of this release Lighthouse Petroleum, Inc., lacks the financial capabilities to meet its financial obligations and its management expects to dilute the company's shares to raise the necessary operating capital. Based upon industry standards Lighthouse Petroleum would be considered highly speculative and lacks any competitive advantage over its competition. Additional risks you should consider are that this list is limited and additional risk not mentioned may apply: failure to meet Lighthouse's financial and contractual obligations and managerial errors made based upon the Company's limited experience and knowledge of the industry, commodity risk, acts of God and regulatory risk. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements.
IR Pro 2.0, Inc.
Todd Violette, CEO
Lighthouse Petroleum, Inc.
SOURCE Lighthouse Petroleum, Inc.