LEVELLAND, Texas, Aug. 10, 2012 /PRNewswire/ -- (OTC: PDGO and LHPT) Recently the Lighthouse Petroleum, Inc. and Paradigm Oil and Gas, Inc. have posted the following information on their website.
The management of Paradigm Oil and Gas, Inc., has begun discussion with an independent private oil and gas producer in the United States. The objective is to purchase existing proven production. Management's internal plan is to purchase up to 1,500 barrels a month in production. Management believes this would require Paradigm to purchase up to 25 wells, with minimum production of about 2 BOE/d. Management has also come to an agreement with the independent private oil and gas producer for two price-points for acquisition of production.
Management also believes buying Lighthouse Petroleum, Inc., a Texas company and wholly owned subsidiary of Lighthouse Petroleum, Inc., a Delaware (OTC: LHPT) company will give Paradigm an oil producing asset upon closing and position Paradigm to potentially take over the Reames/Masterson Letter of Intent. The reserve study for the Reames/Masterson shows about 450,000 barrels in reserve, which at a market price of $90.00 per barrel could create an asset for Paradigm in the range of about $40,500,000. Documents related to the transaction were published on OTC Markets on July 12, 2012 as Supplemental Information for Lighthouse Petroleum, Inc. It is Management's belief that the DTC "chill" on Lighthouse's stock has affected its trading and valuation. Management believes upon completion of the merger with Paradigm, Lighthouse's position with properties in Louisiana will allow the company to pursue deep drilling opportunities in the Tuscaloosa Marine Shale. The operator of the Lucy Lee well believes that the Liverpool Field in St. Helena Parrish could potentially have up to 3 million barrels in Reserve.
How Does Paradigm plan to Purchase the wells and projects get done without massive dilutions at these levels?
The Board of Directors have approved and filed with the state of Nevada a Designation of Rights and Preferences creating Class B Preferred shares with $4.00 face value with redemption of $.25 of the $4.00 every 90 days after a 6 month grace period over 54 months and paying semi-annual interest payments of 7% or 14% annual. "My position is that Paradigm has created an attractive plan to purchase producing assets from independent operators looking for an exit strategy. Paradigm is paying an attractive rate of interest and can manage dilution by paying for the acquisition out of cash flow. Some of the targeted companies have main members of management with health concerns and can no longer operate their business at their normal capacity so selling to Paradigm has become a good option. A small start up like Paradigm will be aggressive during my tenure as CEO, pursuing a model of acquiring small cash flowing businesses until we position the Company to increase its opportunities."
New Subsidiary: Paradigm has incorporated a new subsidiary in which management has begun establish business partners the new subsidiary's operations.
At the request of many shareholders today's conference call will be reschedule from today to Wednesday Morning, August 15, 2012 at 9:00 AM.
The conference call will be a lecture style hosted by CEO Todd Violette. Shareholders that have questions they wanted answered on the call may email them to firstname.lastname@example.org prior to the call.
Call in number 1-559-670-1000
Participant Code 321599#
A Shareholders Questions and Answer sections will start being posted today around 2 pm EDT.
About Lighthouse Petroleum, Inc.
Lighthouse Petroleum, Inc. is in the initial development 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 it 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 & Gas Company that trades 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. Paradigm Oil and Gas, Inc., and Lighthouse Petroleum, Inc., (the "Companies") are exploration companies with limited experience in the oil and gas industry. At the time of this release the Companies lack the financial capabilities to meet their financial obligations and their management expects to dilute the Companies' shares to raise the necessary operating capital. Based upon industry standards the Companies 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 the Companies' financial and contractual obligations, the Companies' managerial errors made based upon the Companies' 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
SOURCE Lighthouse Petroleum, Inc.