PLANO, Texas, Jan. 3, 2013 /PRNewswire/ -- Globalgroup Investment Holdings, Inc. (PINKSHEETS: GIHI) announced today that its subsidiary Sovereign Oil Corp has completed the initial clean-up of the Baker lease tank battery in preparation for oil storage from the accessible production of the 9 existing wells and 3 additional wells scheduled to be re-worked in Q1. The electricity has been tested and oil is expected to begin flowing by mid-month.
Under the terms of the acquisition Sovereign has an additional 60 days in which to complete its due diligence and all oil recovered during this period shall be the property of Sovereign Oil & Gas. Sovereign expects to close the acquisition by March 1st 2013.
Fred Rackers, President of Globalgroup Investment Holdings, Inc., stated, "The secondary recovery drilling of the three wells on the Baker lease in Kansas in addition to the 9 existing producing wells is just the beginning. Several additional wells are anticipated to be drilled later this year on the Baker lease." Mr. Rackers continued, "The production from the 9 existing wells and projected production from the 3 wells to be re-worked will result in improved cash flow for Globalgroup throughout 2013."
Upon completing the 3 re-works and restart of the 9 existing wells, GIHI's petroleum division expects annual revenues at current market prices to add an additional $200,000 annually.
About Globalgroup Investment Holdings, Inc.
Globalgroup provides a viable online shopping alternative for fiscally challenged consumers by offering quality name brand products at affordable prices, regardless of household income, through credit alternatives and time-payment options. Globalgroup also offers technology solutions such as GlobalLOK™ that address the computer payment collection challenges associated with rent to own, pay as you go and no-credit-check computer markets, and in other industries where remote PCs and laptops are deployed. Sovereign Oil, a wholly owned subsidiary, has its emphasis on oil and gas exploration, drilling, and well completion.
Notice Regarding Forward-Looking Statements This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words or phrases "would be," "would allow," "intends to", "will likely result," "are expected to," "will continue," "anticipate," "expect," "estimate," "project," "indicate," "could," "potentially," "should," "believe," "considers," or similar expressions are intended to identify "forward-looking statements." Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. These include the company's historic lack of profitability, end user customer acceptance and actual demand, which may differ significantly from expectations, the need for the company to manage its growth, the need to raise funds for operations and other risks within the regulation of the industry. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company's past performance is not necessarily indicative of its future performance. The Company does not undertake, and the Company specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, events or circumstances after the date of such statement.
For additional information contact: Globalgroup Investment Holdings, Inc.
SOURCE Globalgroup Investment Holdings, Inc.