DALLAS, March 28, 2013 /PRNewswire/ -- (OTC PINK: PDGO) and (OTC PINK: ERAO) Vince Vellardita, President of Paradigm Oil and Gas Inc. announced today that Paradigm Oil & Gas and Energy Revenue America signed a definitive agreement to merge certain assets from both companies' by the way of a Stock Share Agreement.
"By combining certain assets of both companies; gives us a much stronger foothold in the Oil & Gas Industry," stated Vince Vellardita, President of Paradigm Oil and Gas Inc., and Energy Revenue America, Inc.
The transaction is closed; Paradigm Oil and Gas Inc.'s management expects to dividend the shares received from ERAO to PDGO shareholders of record as of April 15, 2013.
Now, with the closing of this transaction, both Companies will have wells of Oil & Gas and nearly 3,000 acres of land leases. In addition they also have a technology Company that has contracts to fulfill for oil wells from Oklahoma to Texas.
What does this mean for both PDGO and ERAO? Simple: GROWTH and POTENTIAL REVENUE! We believe it will afford us three revenue streams. The first being Oil production, the second being natural gas production and finally, the proven technology from the Centurion which should be highly profitable service based income.
Here is the estimated basis in which management is working off is:
Oil Production & Estimated Cost: Revenue estimated at $90 per barrel, lifting cost of about $45 per barrel and net about $45 per barrel. The estimated gross margin for the production of oil is expected to be about 50% depending on commodity market prices.
Gas Production & Estimated Cost: Revenue estimated about $3.35 MCF, cost about $2.08 MCF and net about $1.27 MCF. The estimated gross margin for the production of Natural Gas Production is expected to be about 37.9% depending on commodity market prices.
Centurion Technology working a 40 hour week at $150 per hour earns about $6,000 per week with estimated operating cost of $2,750 per week, expected to Gross Margin about $3,250 per week without additional services added.
"I am thrilled to be working with Vince Vellardita and the Paradigm Oil & Gas team. What they do for the venture; enables me to focus on the development and production of our Oil & Gas Company, which increases Shareholder value and allows me to live my dream of potentially building the one of the largest Oil & Gas Companies in the Mid West," stated Charley Havens, CEO of Energy Revenue America, Inc.
About Paradigm Oil and Gas, Inc.
Paradigm Oil and Gas, Inc. (OTC Pink: PDGO) is a dynamic company in business to provide both, service work to the oil and gas marketplace and to produce oil. Paradigm's goal is to identify oil producing wells and use modern technology to make them profitable based on modern commodity pricing. Paradigm Oil & Gas has several proven oil production leases and options for many more and also holds the rights to the Centurion Technology and owns rigs that target the shallow stripper wells.
About Energy Revenue America, Inc.
(OTC: ERAO). ERA was formed to become an equity partner in various energy deals. Their goal is to recognize the value in a transaction and provide the capital to enhance the value of those projects, to the benefit of all parties. ERA presently owns a 65 mile pipeline and 3,000 acres along it providing natural gas production. They have many existing wells requiring re-work into the natural gas plays and transporting third party natural gas production to their purchaser.
Forward Looking Statements
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., is a company with limited experience in the oil and gas industry. At the time of this release Paradigm Oil and Gas, 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 Paradigm 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 risks not mentioned may apply: failure to meet Paradigm's financial and contractual obligations, Paradigm's managerial errors made based upon the Company's limited experience and knowledge of the industry, commodity risk, acts of God and regulatory risk. Revenue estimated in this release is subject to change based on commodity market pricing and unknown factors to management therefore making all the estimates wrong. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements.
Vince Vellardita, President
Paradigm Oil and Gas, Inc.
SOURCE Paradigm Oil and Gas, Inc.