LORTON, Va., Dec. 9, 2010 /PRNewswire/ -- Next Generation Energy Corp. (OTC Bulletin Board: NGMC) (Nexgen), formerly Next Generation Media Corp., today said it is beginning to update shareholders and potential investors on its new business strategies and accomplishments.
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. "The environmental advantage of natural gas over other fossil fuels makes this an excellent sector to enter at this time," said CEO Darryl Reed.
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.
The Company is performing due diligence currently on several properties and intends on closing several ORRI's in the first quarter of 2011, which will result in immediate cash flow to the Company. Also, NGMC is currently in negotiations with a large regional bank to secure a line of credit and is also interested in raising capital through equity to further implement its acquisition strategy.
"We fully believe natural gas is going to play a bigger role in the U.S energy plans in the coming years and by acquiring these wells while the price of natural gas is depressed we believe that we will be rewarded in the near future as natural gas becomes more widely used for both power generation and in transportation," said Mr. Reed. "We believe we can acquire energy properties with high intrinsic future value and that we can generate existing, reliable revenue streams by acquiring interests in operating and proven gas and oil wells."
"Natural gas burns more cleanly than other fossil fuels, 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. This is the cleanest source of power available using fossil fuels," said Mr. Reed.
("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.)
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SOURCE Next Generation Energy Corp.