Next Generation Energy Corp. Announces Letter of Intent to Acquire 10 Completed Gas Wells in Eastern Kentucky
LORTON, Va. and KNOX COUNTY, Ky., Feb. 22, 2011 /PRNewswire/ -- Next Generation Energy Corp. (OTC Bulletin Board: NGMC), (Nexgen), formerly Next Generation Media Corp., is pleased to announced that it has entered into an agreement to acquire Knox Gas, LLC, the owner of interest in 10 drilled and completed gas wells in Knox County, Kentucky, for a purchase price of $500,000. The closing date is expected to occur no later than March 15th, 2011.
"The wells will be online and producing gas within the next several months," said Darryl Reed, CEO. "In addition to the producing wells, Nexgen will also be acquiring a 700-acre lease in Knox County for the future development of additional gas wells."
"Our strategy moving forward is to acquire already producing gas wells in the various shale gas sectors located throughout the U.S. We believe that natural gas is a very undervalued commodity at present, especially because of its environmental benefits, and that it will play a significantly larger role in the energy plans for America's future," Mr. Reed said.
"By acquiring already producing gas wells, Nexgen is able to generate immediate cash flow. It also allows the Company to focus on acquisitions, especially acquiring royalty interests in gas wells in which it can buy a share of the existing gas revenues and producing gas wells in which Nexgen will not have operational responsibility," Mr. Reed concluded.
Next Generation Energy is acquiring ORRI (Over Riding Royalty Interests) in producing natural gas wells that have a long, steady, predictable level of production that would be expected to continue for many years. An overriding royalty is the right to receive a percentage of revenues received through the sale of natural gas from a well without the expense of drilling or monthly operating expenses. Nexgen believes that by acquiring ORRI in many different natural gas wells it will diversify its risk and revenue stream, which will enable the Company to produce steady returns over a long period of time.
By focusing on acquiring ORRI interests in proven producing gas wells, Nexgen will have no operational responsibilities for these gas wells, which will allow it to focus on an aggressive schedule of acquisitions. Natural gas burns more cleanly than other fossil fuel, such as oil and coal, and produces less carbon dioxide per unit of energy released. Burning natural gas produces about 30% less carbon dioxide than burning petroleum and about 45% less than burning coal. It is the cleanest source of power available using fossil fuels.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This press release contains or may contain forward-looking statements such as statements regarding the Company's growth and profitability, growth strategy, liquidity and access to public markets, and trends in the industry in which the Company operates. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update these forward-looking statements to reflect actual results, changes in risks, uncertainties or assumptions underlying or affecting such statements, or for prospective events that may have a retroactive effect.
Darryl Reed |
|
CEO |
|
703-372-1282 |
|
Paul Knopick |
|
E & E Communications |
|
(949) 707-5365 |
|
SOURCE Next Generation Energy Corp.
Share this article