Nice injection of cash...I see this sale as a timely move on Strategics part that will certainly move things along faster for the company and help to speed up the closure of any pending financing ect, the stage should be set here in the short term for a nice move up on the stock....best to all
The "Company") is pleased to announce it has accepted anunsolicited offer to acquire all of the company's interest in leasesand production in Franklin and Richland Parish, Louisiana from FrazierResources Company, Houston, Texas. Under the terms of the offer, theCompany would receive 75% of a $775,000.00 cash payment, or $581,250for the Company's 75% interest in the Holt, Strahan and Dixon leases.The Company originally acquired the producing leases in the 4th quarterof 2006 for $250,000. Frazier Resources is currently engaged in areview of the Company's leases, assignments, lease operating expenses,and related documents. Upon successful completion of Frazier's duediligence review, the parties will execute a "Letter of Intent"outlining the final sales terms and subsequently close the transaction.Company President and CEO, Randall Reneau, stated, "Althoughacquiring properties, both developed and undeveloped, is the core ofour current growth model, the Company could not turn down such anattractive offer that will give the Company a strong return on itsoriginal investment while increasing our cash position without dilutingour share capital. The sale of these leases will allow us to focus onlarger reserve plays, including a 3D seismic target in S. Texas and anenhanced oil recovery project in Jefferson County, Illinois, both ofwhich have potential significant reserves.