HOUSTON, Aug. 27, 2014 /PRNewswire/ -- Radiant Oil & Gas, Inc. ("Radiant" or the "Company") (OTC: ROGI), an independent oil and gas exploration and production company focused on the onshore and shallow state waters of the U.S. Gulf Coast area, announced today it has acquired the Garnet project, a 1,000 acre field in St. Mary Parish, La. originally discovered and developed by Sun Oil Co. Based on management estimates, the project adds over $45 million to the Company's PV-10 reserves. A third-party analysis of the project is currently underway to confirm management's initial analysis.
"This acquisition is consistent with our strategy of purchasing and redeveloping long lived, historically producing assets in the Gulf Coast," said Radiant CEO John Jurasin. "As interest in unconventional shale plays has surged, we continue to see a number of overlooked opportunities to acquire quality, mature projects in conventional areas at compelling valuations. Garnet in particular offers a unique opportunity. Because the field has been extensively studied, and we have experienced crews in the region, we are confident that we can quickly get this project commercially producing and generating cash flows."
Radiant outbid four other parties in a competitive lease sale to acquire the project. Garnet is one of a series of fields from the original discovery, which contains approximately 500 wells. Since 1965, it is estimated that those wells have produced over 59 million barrels of oil and 2.8 trillion cubic feet of gas. Radiant has already identified 21 areas where it can re-work abandoned wells or drill new wells.
This press release includes certain estimates and other forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, including statements regarding timing of drilling operations, reserves associated with prospects, oil content of prospects, future production rates and drilling results, ultimate recoveries from wells, ability to fund drilling operations, and the ultimate outcome of such efforts. Words such as "expects", "anticipates", "intends", "plans", "believes", "assumes", "seeks", "estimates", "should", and variations of these words and similar expressions, are intended to identify these forward-looking statements. While we believe these statements are accurate, forward-looking statements are inherently uncertain and we cannot assure you that these expectations will occur and our actual results may be significantly different. These statements by the Company and its management are based on estimates, projections, beliefs and assumptions of management and are not guarantees of future performance. Important factors that could cause actual results to differ from those in the forward-looking statements include the factors described in the "Risk Factors" section of the Company's filings with the Securities and Exchange Commission. The Company disclaims any obligation to update or revise any forward-looking statement based on the occurrence of future events, the receipt of new information, or otherwise.
Radiant Oil & Gas, Inc.
John M. Jurasin, CEO
C. Scott Wilson. CFO
SOURCE Radiant Oil & Gas, Inc.