Sovereign Oil Signs LOI to Acquire 9 Producing Wells in SE KS
PLANO, Texas, Nov. 28, 2012 /PRNewswire/ -- Globalgroup Investment Holdings, Inc. (GIHI.PK) announced today its subsidiary Sovereign Oil, Inc. has executed an LOI agreement with Ad Astra Oil Corporation to acquire a 120 acre oil and gas lease in Miami County Kansas with 9 producing oil wells and 5 oil wells scheduled to be reworked.
Under the terms of the acquisition the Company will immediately upon completion of the Definitive purchase agreement assume the production of 9 oil wells and then rework the 5 additional secondary recovery wells.
The agreement is to be completed NLT December 15th 2012, subject to final completion of normal due-diligence by GIHI. The company expects the cost of the additional 5 reworks to be approximately $10,000 per well.
Fred Rackers, President of Globalgroup Investment Holdings, Inc., stated, "This acquisition of 9 producing wells and the 5 secondary recovery opportunities in Kansas is a huge opportunity for GIHI and our subsidiary Sovereign Oil, Inc. The company expects to complete the acquisition by year end and begin the reworks early next year."
Upon completing the re-works, GIHI's petroleum division expects additional annual revenues of approx $250,000.
About Globalgroup Investment Holdings, Inc.
Globalgroup provides a viable online shopping alternative for fiscally challenged consumers by offering quality name brand products at affordable prices, regardless of household income, through credit alternatives and time-payment options. Globalgroup also offers technology solutions such as GlobalLOK™ that addressthe computer payment collection challenges associated with rent to own, pay as you go and no-credit-check computer markets, and in other industries where remote PCs and laptops are deployed. Sovereign Oil Inc., a wholly owned subsidiary, has its emphasis on oil and gas exploration, drilling, and well completion.
Notice Regarding Forward-Looking Statements This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words or phrases "would be," "would allow," "intends to", "will likely result," "are expected to," "will continue," "anticipate," "expect," "estimate," "project," "indicate," "could," "potentially," "should," "believe," "considers," or similar expressions are intended to identify "forward-looking statements." Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. These include the company's historic lack of profitability, end user customer acceptance and actual demand, which may differ significantly from expectations, the need for the company to manage its growth, the need to raise funds for operations and other risks within the regulation of the industry. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company's past performance is not necessarily indicative of its future performance. The Company does not undertake, and the Company specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, events or circumstances after the date of such statement.
For additional information contact: Globalgroup Investment Holdings, Inc.
SOURCE Globalgroup Investment Holdings, Inc.