LAS VEGAS, June 1 /PRNewswire-FirstCall/ -- Consolidation Services, Inc. ("CNSV") (OTC Bulletin Board: CNSV), an exploration and production company engaged in the acquisition, development and operation of domestic oil and gas mineral rights, has entered into a non-binding Letter of Intent to purchase a number of mineral leases in California for $35 million which represents ongoing current production equal to 265 barrels of oil per day and 485,000 cubic feet of natural gas per day accounting for over $300,000 a month in net revenue.
The LOI outlines the terms acceptable to both parties and serves as a basis for a definitive Purchase and Sales Agreement for the acquisition of oil and gas production, reserves and operations maintained under 6 mineral rights leases. If completed, the acquisition will represent a significant and material increase in current production, proven reserves and revenue for CNSV. Management anticipates closing on the acquisition during the third quarter 2010.
Consolidation Services, Inc. is engaged in the exploration, acquisition, development, production and marketing of natural gas and crude oil in North America. The Company, founded in 2007, is based in Las Vegas, Nevada. The Company currently owns oil and gas wells along with oil and gas mineral rights on approximately 13,500 acres in eastern Kentucky and Tennessee. Consolidation Services, Inc. is attempting to build shareholder value through further acquisition and exploration of domestic energy resources.
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.