American Standard Energy Corporation Completes Acquisition of Partial Interest in 36 Wells
SCOTTSDALE, Ariz., Feb. 15, 2011 /PRNewswire/ -- American Standard Energy Corp (the "Company") (OTC Bulletin Board: ASEN) announces today that it has completed an acquisition of 36 gross wells, or 13.1 net wells located within Texas, Oklahoma and Arkansas. This represents 4,460 gross acres, or 1,850 net acres held by production, and this acreage also includes an additional 22 PUD sites for future development.
The Agreement between ASEN and Geronimo Holding Corporation was consummated February 10th, 2011. The 36 gross wells represented in this Agreement brings American Standard's Gross well count to 77, which are located in North Dakota, Texas, New Mexico, Oklahoma, and Arkansas.
The acquired wells in this current transaction produced greater than 350 Barrels of Oil Equivalent (BOE) in daily production throughout 2010, which will significantly increase ASEN's daily BOE production. The more than doubling of the Company's daily production adds immediate revenues and lease operating income to support its ongoing operations.
Richard MacQueen, President of American Standard Energy Corp. stated, "The acquisition of these proven producing wells will have a significant impact on our revenues with immediate effect, and will provide ASEN great future earnings potential based on the PUD locations included within the property. We expect this acquisition to substantially expand our capacity to acquire and develop new acreage in the Bakken and Eagle Ford shale plays. This is an exciting step for American Standard and its shareholders."
Scott Mahoney, the Company's CFO, reinforced the importance of ASEN's expansion in the Permian Basin as a funding mechanism for growth in other regions, "The added proven reserves from this acquisition will increase our total proven reserves by more than 500%. This will immediately increase the collateral base required for ASEN to access the debt capital markets as an additional funding mechanism beyond the equity markets to fund our continued growth in the Bakken."
FORWARD-LOOKING STATEMENTS
Except for the historical information contained herein, this press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act"). All statements other than statements of historical facts included in this report regarding our financial position, business strategy, plans and objectives of management for future operations, industry conditions, and indebtedness covenant compliance are forward-looking statements. When used in this report, forward-looking statements are generally accompanied by terms or phrases such as "estimate," "project," "predict," "believe," "expect," "anticipate," "target," "plan," "intend," "seek," "goal," "will," "should," "may" or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about, actual or potential future sales, market size, collaborations, and trends or operating results also constitute such forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond our Company's control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: oil and gas prices, our ability to raise capital, general economic or industry conditions nationally and/or in the communities in which our Company conducts business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, other economic, competitive, governmental, regulatory and technical factors affecting our Company's operations, products, services and prices.
We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control.
CONTACT: |
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Investor Relations |
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Andrew Wall, General Counsel |
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(480) 371-1929 |
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SOURCE American Standard Energy Corp.
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