HENDERSON, Nev., Jan. 4 /PRNewswire-FirstCall/ -- Consolidation Services, Inc. ("CNSV"), (OTC Bulletin Board: CNSV), announced today that effective January 1, 2010, the Company's assets and liabilities are being divided into two different legal entities, CNSV and a corporation ("Newco") owned by CNSV, as the first step in spinning out Newco to each shareholder of record in CNSV. Each CNSV shareholder (15,258,220 shares outstanding) on January 1, 2010 (the "Record Date") is expected to receive, at some later date, one share of Newco for each share of CNSV owned on the Record Date. Although the separation of assets and liabilities is considered effective as of January 1, 2010; completion of the spin out transaction to the Shareholders of Record is subject to, and conditioned on, management of CNSV working through a number of complex regulatory, accounting, tax and legal issues with the assistance of appropriate professionals.
As of January 1, 2010, CNSV is primarily an oil and gas company with a residual coal royalty receivable on coal assets that were owned by CNSV as of the Record Date. Newco will be primarily a coal company with a residual oil and gas royalty receivable on all oil and gas assets that were owned by CNSV as of the Record Date.
Dr. Thomas, CEO anticipates that the division of assets will benefit all CNSV shareholders, past and future, as management anticipates that accumulation of additional oil and gas potential reserves and future development of these potential reserves will be easier under the new structure. CNSV and Newco will be able to make different and independent financing and staffing decisions which maximize the development of their respective assets.
About Consolidation Services, Inc.
CNSV is engaged in the acquisition and development of oil and gas mineral rights in eastern Kentucky. The Company owns oil and gas rights on approximately 12,000 acres in eastern Kentucky. Reserve reports prepared by independent engineers show an estimated 34.7 billion cubic feet of potential reserves on approximately 10,000 acres. CNSV's other oil and gas rights are in close proximity.
Forward Looking Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and under the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included in this press release are forward-looking statements. Without limiting the foregoing, the words "believe," "anticipate," "plan," "expect," "seek," "potential", "estimate" and similar expressions are intended to identify forward-looking statements. These statements relate to future events or to the Company's future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown uncertainties and other factors which are, in some cases, beyond the Company's control which could, and likely will, materially affect actual results, levels of activity, performance or achievements.
Any forward-looking statement reflects the Company's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. Such risks, uncertainties and other factors which could impact the Company and the forward-looking statements contained herein are included in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
SOURCE Consolidation Services, Inc.