FT. WORTH, Texas, Aug. 18, 2011 /PRNewswire/ -- VHGI Holdings, Inc. (OTC.QB: VHGI) and VHGI Energy, LLC, its wholly-owned operating subsidiary, are extremely excited to announce plans to begin a drilling program in Tennessee, U.S.A.
VHGI Energy has entered into an agreement with Outdoor Resources of Crossville, TN to drill its initial well within the next 120 days. They plan an additional four (4) wells as quickly as possible upon successful completion of this initial effort. The wells are to be located in the "Upper Cumberland Region" of north central Tennessee (Morgan, Fentress and/or Scott Counties). The plan is for a shallow drilling program with a target of the Monteagle formation (750'); traditionally Tennessee's top gas and oil producing formation. The Monteagle is the most wide spread oil and gas producing formation in the Cumberland Plateau.
"We have been working on entry level drilling programs for the past year and believe this is the right place to invest this start-up capital," said Mr. Eric Leonetti, VHGI VP/COO, adding, "Outdoor Resources' track record of success with more than thirty years in the area coupled with the potential quick return on our investment make this an ideal situation."
This is a single well "Turnkey" drilling agreement allowing VHGI Energy, LLC a 65% "Over Riding Royalty" while Outdoor Resources, Inc. and the land owners will hold the remaining interest. Outdoor Resources, Inc. will hold 100% of the "Working Interest". VHGI Energy, LLC has retained the right to acquire up to an additional four (4) wells upon completion of this initial effort. The "Turnkey" drilling costs are to be $150,000.00 per well.
About VHGI and VHGI Energy
VHGI is a diverse company with assets and interests focusing on opportunities within the Healthcare Technology Industry, Precious Metals and Energy Markets. VHGI Energy LLC, a wholly owned subsidiary of VHGI has recently initiated steps to leverage the company's operating history and corporate resources within the Oil, Natural Gas and Mining sectors and intends to pursue these opportunities through Lease-Purchase, Acquisitions and Joint Ventures opportunities.
"Safe Harbor" Statement:
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SOURCE VHGI Holdings, Inc.