HOUSTON, April 19, 2011 /PRNewswire/ -- Radiant Oil & Gas, Inc. (OTC: ROGI), a Houston-based oil and natural gas producer, agreed to buy production in Louisiana from WLE, Inc. for $50,000 per flowing barrel as it seeks to expand production in the region.
The cash and stock transaction involves three fields on approximately 3,000 acres, and includes a Texaco legacy field with 15 pay sands that has produced since 1929; Radiant will be the operator. The properties have current output equivalent to about 150 barrels of oil per day and are near existing Radiant acreage. The deal is expected to close by June 1.
In addition to immediately establishing cash flow for our company, which will aid in funding our organic program, we are establishing a partnership with a 50 year-old well-servicing company that owns completion rigs and can provide oilfield services through its 40-person strong company. Radiant will receive a 25% discount to market when choosing to use these services.
"We are extremely pleased about this acquisition and the dynamics developed in allowing a cost-competitive advantage. This partnership combines Radiant's geosciences and engineering staff with WLE's 50 years of hands-on well-servicing experience," said John Jurasin, President and CEO at Radiant. "This acquisition strengthens our land position in Louisiana, leverages our operating capabilities and infrastructure and will contribute to future reserve and production growth. It will pave the way for future acquisitions in Louisiana and Texas at a competitive cost advantage."
Radiant Oil & Gas is an independent oil and gas exploration and production company with properties in Louisiana and Texas. More information about Radiant is available at www.radiantoilandgas.com.
Radiant Oil & Gas
Chris Heath, 832-242-6000
SOURCE Radiant Oil & Gas, Inc.