VHGI ENERGY, LLC Announces Plans to Begin Drilling Program in Tennessee Within the Cumberland Plateau
FT. WORTH, Texas, Aug. 18, 2011 /PRNewswire/ -- VHGI Holdings, Inc. (OTC.QB: VHGI) and VHGI Energy, LLC, its wholly-owned operating subsidiary, are extremely excited to announce plans to begin a drilling program in Tennessee, U.S.A.
VHGI Energy has entered into an agreement with Outdoor Resources of Crossville, TN to drill its initial well within the next 120 days. They plan an additional four (4) wells as quickly as possible upon successful completion of this initial effort. The wells are to be located in the "Upper Cumberland Region" of north central Tennessee (Morgan, Fentress and/or Scott Counties). The plan is for a shallow drilling program with a target of the Monteagle formation (750'); traditionally Tennessee's top gas and oil producing formation. The Monteagle is the most wide spread oil and gas producing formation in the Cumberland Plateau.
"We have been working on entry level drilling programs for the past year and believe this is the right place to invest this start-up capital," said Mr. Eric Leonetti, VHGI VP/COO, adding, "Outdoor Resources' track record of success with more than thirty years in the area coupled with the potential quick return on our investment make this an ideal situation."
This is a single well "Turnkey" drilling agreement allowing VHGI Energy, LLC a 65% "Over Riding Royalty" while Outdoor Resources, Inc. and the land owners will hold the remaining interest. Outdoor Resources, Inc. will hold 100% of the "Working Interest". VHGI Energy, LLC has retained the right to acquire up to an additional four (4) wells upon completion of this initial effort. The "Turnkey" drilling costs are to be $150,000.00 per well.
About VHGI and VHGI Energy
VHGI is a diverse company with assets and interests focusing on opportunities within the Healthcare Technology Industry, Precious Metals and Energy Markets. VHGI Energy LLC, a wholly owned subsidiary of VHGI has recently initiated steps to leverage the company's operating history and corporate resources within the Oil, Natural Gas and Mining sectors and intends to pursue these opportunities through Lease-Purchase, Acquisitions and Joint Ventures opportunities.
"Safe Harbor" Statement:
The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from new products in development and any other statements not constituting historical facts are "forward-looking statements," within the meaning of and subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Since this information may contain statements that involve risk and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results. This document may contain forward-looking statements concerning the Company's operations, current and future performance and financial condition. These items involve risks, contingencies and uncertainties such as product demand, market and customer acceptance, the effect of economic conditions, competition, pricing, the ability to consummate and integrate acquisitions, and other risks, contingencies and uncertainties detailed in the Company's SEC filings, which could cause the company's actual operating results, performance or business plans or prospects to differ materially from those expressed in, or implied by these statements. The Company undertakes no obligation to revise any of these statements to reflect the future circumstances or the occurrence of unanticipated events.
SOURCE VHGI Holdings, Inc.
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