Lighthouse Petroleum, Inc. no longer pursuing the sale of its subsidiary
LEVELLAND, Texas, Oct. 12, 2012 /PRNewswire/ -- Lighthouse Petroleum, Inc. (OTC Pink sheets: LHPT) is no longer going to sell its Texas operating subsidiary, Lighthouse Petroleum, Inc. ("Lighthouse Texas"). Management has made this decision based upon the following reasons:
- The equity valuation of Lighthouse Petroleum, Inc. has dropped since the announcement of the proposed merger. Management believes this is because most investors didn't believe Lighthouse would have any value after the merge. This is no longer the case and Lighthouse is going to continue pursuing a plan to increase its value.
- Management is working on improving the financial management structures and its ability to be better at financial reporting. Lighthouse became profitable for the first time in several years based mainly on the consulting side of the business during the second quarter. A tremendous amount of time has recently been placed on getting the accounting records in order to prevent future delays and to help ensure more timely filings in the future.
- DTCC: In August, Lighthouse learned that a ruling from the SEC earlier this year allowed us to inquire about the chill placed on the stock. DTCC responded with a list of questions and our attorneys issued an opinion to DTCC. Lighthouse hopes this response leads to the DTCC chill being lifted but DTCC notified us that they reserve the right to ask more questions. We plan to keep the shareholders updated once we receive additional information.
- Business Direction and the revenue model:
- Lighthouse will expand its consulting and marketing business. Lighthouse has begun developing its client base and is hoping to build its pipeline of transactional revenue from the consulting division during the next several quarters.
- In regards to oil production-Lighthouse's management has becoming better and more technically proficient at selecting projects allowing Lighthouse to modify its focus and begin looking for projects in the Wolfcamp or the Spraberry Trend. Management believes it is time for Lighthouse to get more aggressive and begin working on larger projects. Lighthouse will continue to rework wells but a majority of its focus will be securing larger based projects in Western Texas. Management believes oil production will be one of the best driving forces behind the company and anticipates going after wells that could produce in excess of 50 to 75 barrels a day.
About Lighthouse Petroleum, Inc.
Lighthouse Petroleum, Inc. is in the initial development stage as a 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 establish the network to acquire additional land asset in our targeted areas. The management's focus is on acquiring and developing assets located in the Permian Basin and Arch-Fort Worth Basin. Lighthouse is a growth orientated junior oil and gas company that trades on the OTC markets under the symbol "LHPT".
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 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, Lighthouse's 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.
Todd Violette, CEO
Lighthouse Petroleum, Inc.
SOURCE Lighthouse Petroleum, Inc.