Blaze Energy Acquires Over Forty Thousand Acres of Subsurface Mineral Rights with Gas Lease Production in West Virginia

BOISE, Idaho, June 4, 2013 /PRNewswire/ -- Blaze Energy (Pink Sheets: BLZE) today announced that it has acquired approximately 43,746 acres of subsurface coal, coalbed methane (CBM), and other mineral rights under enriched acreage in West Virginia, along with an existing CBM gas lease with Consol Energy's subsidiary, CNX Gas Company.  CNX currently leases the entire acreage for CBM production, and is presently in the first year of a five-year renewal.

The Company acquired both the mineral rights and the associated gas lease with CNX, by and through a newly formed subsidiary, Blaze Minerals, LLC.  The assets were acquired in fee, in a transaction valued just over $51,000,000.  The underlying engineering report compiled in FY2010 on the mineral rights estimated the value at $130,000,000; the Company is in the process of updating this reserve report taking into account current market conditions.

"Having previously explored the underlying mineral rights for production as far back as 2006, the Company has had a long-standing connection to these properties," commented A. Leon Blaser, Chief Executive Officer of Blaze Energy. "With over 500,000 Million tons of in-place, clean coal reserves, in additional to the gas, the Company was committed to acquiring the minerals rights as its core asset, since the sale of its natural gas interests to Petrohawk; additional announcements to follow in the upcoming weeks."       

The above release should be read in conjunction with past submissions of the Company filed with the Securities and Exchange Commission, future filings detailing the underlying acquisition, on Form 8-K or otherwise, and can be obtained online at www.sec.gov.

This press release includes forward-looking statements as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to matters such as prospects, anticipated operating and financial performance. Actual prospects and performance may differ from anticipated results due to economic conditions and other risks, uncertainties and circumstances partly or totally outside the control of the company, including risks of production variances from expectations, market volatility, the level of capital expenditures required to fund ongoing drilling initiatives and the ability of the company to execute its business strategy. These and other risks are described in the company's reports filed with the United States Securities and Exchange Commission.

These forward-looking statements are made only as of the date of this communication and Blaze Energy undertakes no obligation to update or revise these forward-looking statements.

SOURCE Blaze Energy

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