CGrowth Capital, Inc. (OTC Pink: CGRA) (PINKSHEETS: CGRA) (the "Company") is pleased to announce that it has completed a Purchase and Sale Agreement ("PSA") for the remaining ~80% Working Interest in the assets and wells located on the Company's Wyoming oil leases. The acquisition includes 41 wells (some currently producing and some non-producing) along with the associated fixtures, pumps, and tanks for the current field operation on the leases located in the Powder River Basin. The Company closed the PSA through the assumption of certain debts of the seller. The purchase follows the closing of the valuable ground leases, along with the original ~20% Working Interest in a majority of the existing field operations, which occurred during the third quarter of 2013.
The acquisition now provides the Company with control of the field operations, allows them to provide direction and prioritization of the field development, and gives the Company nearly 100% Working Interest in the oil production from the fields. The Company has significantly increased its revenue potential in the field by increasing its overall Working Interest from ~20% to nearly 100%.
"We were not anticipating this opportunity to present itself to us, but when the call came in that the majority Working Interest was available, we delivered again and jumped at the opportunity to provide shareholders with increased assets and revenues," stated Bill Wright, CEO of CGrowth Capital, Inc. "We now have control of what happens in the field, can make a much stronger presentation for funding opportunities, and we will see much greater asset appreciation and revenue realization as the field produces and we prove out reserves."
Mr. Wright continued, "As an example of what this can mean to the Company, we sent a tanker truck out to one of our storage tanks after the weather began to break and the first pull of oil was in excess of 200 barrels. One of the wells, one that is on the list for us to perform service on, produced 30 barrels the day we turned it back on. While it does not guarantee that result every day on every well, it does show that we are moving in the right direction and we have a tremendous revenue opportunity in front of us."
For more information about CGrowth Capital, visit their website: http://www.CGrowthCapital.com
About CGrowth Capital, Inc.:
CGrowth Capital, Inc. serves as a holding company for businesses and assets focused on all aspects of mining. The processing of metal ore mining is a multi-billion dollar market opportunity which is capitalized through processing, sales, contracting and licensing of assets. CGrowth Capital's services and solutions are designed to assist land owners with monetizing undervalued assets by bringing commodities such as gold and silver to market. CGrowth Capital will focus on acquiring or "claiming" land assets, while also providing partners and affiliates with management services, capital, contract management and logistical services necessary for the successful execution of mining operations.
Statements about the Company's future expectations and all other statements in this press release other than historical facts, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. The above information contains information relating to the Company that is based on the beliefs of the Company and/or its management as well as assumptions made by and information currently available to the Company or its management. When used in this document, the words "anticipate," "estimate," "expect," "intend," "plans," "projects," and similar expressions, as they relate to the Company or its management, are intended to identify forward-looking statements. Such statements reflect the current view of the Company regarding future events and are subject to certain risks, uncertainties and assumptions, including the risks and uncertainties noted. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended or projected. In each instance, forward-looking information should be considered in light of the accompanying meaningful cautionary statements herein. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, the impact of competitive services and pricing and general economic risks and uncertainties. The Company disclaims any obligation to update or revise any forward-looking statements.
CGrowth Capital, Inc.
SOURCE: CGrowth Capital, Inc.