VHGI Holdings, Inc. Announces Successful Bid for 1,280 Contiguous Acres in Texas State Waters for Oil and Gas Production
LEXINGTON, Ky., April 8 /PRNewswire-FirstCall/ -- VHGI Holdings, Inc. (OTC Bulletin Board: VHGI) announced today that its subsidiary VHGI Energy, LLC, through its relationship with Gulf Coast Exploitation, was the successful bidder on oil and gas leases on 1,280 contiguous acres in the Texas State Waters. These leases, which are located in the High Island, Jefferson County, Texas area, will be for five-year terms and will be signed by the Texas General Land Office within 30 days. The 1,280 acres encompasses a structural feature adjacent to the High Island 60 Field which has produced an estimated 3 million barrels of oil. Gulf Coast Exploitation was the successful bidder on the leases, paying $506,400.00, and has agreed to assign the leases to VHGI Energy. VHGI Energy will hold a 100% working interest in the leases, which will equate to a net royalty interest ranging from 80% to 75% (depending on achieving development milestones within the 5 year term), which net royalty interest will be shared with Gulf Coast Exploitation on a basis to be determined.
"This is a 3 million barrel prospect that, if proven, has the potential to generate 2 million net barrels, which in turn has a potential value of +/- $100 million PV at 10%, using a price of $60 per barrel. Once drilling is completed and production commences, the monthly oil production should exceed 3,000 BOPD net. VHGI Energy has not decided whether it will raise capital and drill the prospect or farm-out the drilling," stated John Thibeaux, VHGI Energy's registered petroleum engineer.
"This was a major step moving forward for VHGI Holdings in the execution of our business plan," stated Jim Renfro , VHGI Holdings president. "The oil market continues to remain strong and our top priority is to position VHGI Energy to begin producing revenues as soon as possible, which was one of the primary reasons for signing an agreement to purchase the assets of Sterling and Yazoo as was previously announced in our 8 K filings," continued Renfro The company also plans to release additional information related to the recent purchase on its web site www.vhgienergy.com.
About VHGI Holdings, Inc.
VHGI Holdings, Inc. is a diverse company with assets and interests focusing on Precious Metals Markets (www.vhgigold.com ), and oil and natural gas (www.vhgienergy.com), both wholly owned subsidiaries of VHGI Holdings, Inc. VHGI Holdings, Inc. has recently initiated steps to leverage the company's operating history and corporate resources within these industries and intends to pursue these opportunities through, acquisitions and joint ventures. Investors are invited to obtain information concerning our operations at (www.vhgiholdings.com) or by calling Investor Relations at 561-515-6035 or emailing [email protected].
Safe Harbor Statement:
The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from new products in development and any other statements not constituting historical facts are "forward-looking statements," within the meaning of and subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Since this information may contain statements that involve risk and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results. This document may contain forward-looking statements concerning the Company's operations, current and future performance and financial condition. These items involve risks, contingencies and uncertainties such as product demand, market and customer acceptance, the effect of economic conditions, competition, pricing, the ability to consummate and integrate acquisitions, and other risks, contingencies and uncertainties detailed in the Company's SEC filings, which could cause the company's actual operating results, performance or business plans or prospects to differ materially from those expressed in, or implied by these statements. The Company undertakes no obligation to revise any of these statements to reflect the future circumstances or the occurrence of unanticipated events.
For Further Information:
Shareholder Relations – Communications 561-515-6035
SOURCE VHGI Holdings, Inc.
Share this article