HOUSTON, Feb. 15, 2012 /PRNewswire/ -- Rio Bravo Oil, Inc. ("RIOB" or the "Company") (OTCBB: RIOBD.OB), a growth-oriented energy company engaged in the acquisition, development, and exploration of oil and natural gas properties, announced that on February 13, 2012, the Company acquired Pan American Oil Company, LLC ("Pan American") in exchange for issuance of 5,500,000 shares of the Company's Series A Convertible Redeemable Preferred Stock and assumption of approximately $3,000,000 of Pan American liabilities.
As a result of the transaction, Pan American became a wholly-owned subsidiary of the Company. The transaction was the first step in the execution of the Company's strategy to acquire interests in the oil and gas industry. Pan American has heretofore aggregated certain oil and gas working interests and assets and has a proportionate interest in certain oil field equipment and improvements. Specifically, as a part of the Pan American transaction, the Company acquired the following interests and assets:
- Aggregation through various purchases of a minimum of 63.5% working interest in the Luling Edwards Fields
- An option to purchase a 15% working interest in the Bateman field
Each interest is subject to a 20% carried interest in favor of a third party. The Company currently has plans to drill two new wells in the Edwards formation within the next six months. The Pan American transaction is the first in a series of acquisitions of oil and gas working interests planned by the Company.
"The acquisition of Pan American gives us an important foundation for demonstration of our team's capabilities in resource development and our ability to efficiently develop production," said Thomas Bowman, Chief Executive Officer of RIOB. RIOB's Chief Financial Officer, Carlos E. Buchanan II, commented that, "the acquisition is an important asset which will allow us to demonstrate value growth through focused development of undervalued reserves."
Previously, on February 10, 2012, the Company's Board of Directors appointed Thomas D. Bowman, Carlos E. Buchanan II and Lynden Rose as directors of the Company and accepted the resignations of Paul Vassilakos as President, Treasurer and as a director of the Company and Miles Leahy as Secretary and as a director of the Company. Immediately thereafter, the Company's Board appointed Thomas D. Bowman to the offices of President and Chief Executive Officer; Carlos E. Buchanan II to the offices of Treasurer and Chief Financial Officer and Lynden Rose to the office of Secretary of the Company.
Finally, the Company announced that its previously approved thirty for one forward split of its shares of Common Stock went effective on February 15, 2012.
Forward Looking Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events, or developments RIOB expects, believes, or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by RIOB based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks, and uncertainties, many of which are beyond the control of RIOB, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Further information on such assumptions, risks and uncertainties is available in RIOB's filings with the Securities and Exchange Commission ("SEC"). RIOB's SEC filings are available on its website at www.RioBravoOil.com and on the SEC's website at www.sec.gov. Any forward-looking statement speaks only as of the date on which such statement is made and RIOB undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Rio Bravo Oil, Inc.
Rio Bravo Oil, Inc. (OTCBB: RIOB.OB - News) is a growth-oriented, energy company engaged in the acquisition, development and exploration of oil and natural gas properties. The company has initially acquired certain working interests located within the Luling Edwards, Darst Creek, Luling Branyon, and Salt Flat fields in Texas. It is the Company's strategy to acquire certain additional working interests and assets with productive Edwards reservoirs, and to acquire additional rights associated with its targeted leases in order to obtain secondary development opportunities. The company's operations are focused in the onshore Gulf Coast of Texas. Rio Bravo combines an experienced management and consultant team with experience in the development of underdeveloped resources. Rio Bravo plans to grow production and reserves through development and exploration activities on its existing properties and through acquisitions that meet its long-term objectives for production.
For more information, please go to www.RioBravoOil.com.
SOURCE Rio Bravo Oil, Inc.