HOUSTON, TX--(Marketwired - February 23, 2016) - Virtus Oil and Gas Corporation (OTCBB: VOIL) ("Virtus" or "the Company") today announced it has signed a letter of intent with a US subsidiary of an international Oil and Gas Company, to acquire its U.S. operated, producing Oil and Gas Fields in San Juan County, Utah.
Under the terms of the letter, VOIL has 30 days to conduct and complete its due diligence on the title, compliance, and facility review and finalize the pending offer subject to the third party Reserve Report. VOIL is currently compliant with State of Utah and the Bureau of Land Management to Operate and produce in the state of Utah and will be using previous bond in place to do this.
More details to follow.
Rupert Ireland, Rupert Ireland, CEO of Virtus, said: "This is the beginning of a few acquisitions we hope to announce to the market. My team has been thoroughly evaluating potential prospects for acquisition since our oil traces discovery in the Parowan. Our overhead and expenses make us unique in that we are trimmed so low that acquiring production makes us very attractive during the market downtime. Eventually when oil prices recover these assets will be impressive in our company's portfolio while providing cash-flow now."
Bret Murray, COO of Virtus, said: "Our focus during this downtime has been acquiring production that is cash-flow positive at these times. The experience I have in the Paradox made sense for our team to identify and acquire existing production to get revenues for VOIL. These wells have 123, 727bo cumulative since inception and near 500MCF of natural gas and all gathering lines in place to market. We have engaged the services of a Professional Engineering firm to produce a Reserve Report to gauge futures and proven reserves."
About Virtus Oil and Gas Corporation
Virtus Oil and Gas Corp. (VOIL) is a Houston-based oil and gas exploration and production company currently focused on the Parowan Project, a 55,477+/- Acre prospect targeting the Central Utah Thrust Belt. The prospect is situated near recent Utah discoveries, including Wolverine Gas and Oil's Covenant Oil Field, which is consistent with Virtus' strategy to acquire and develop oil and gas resources in proven, onshore basins in the United States.
Forward-looking Statements
This news release may contain "forward-looking" statements. These forward-looking statements are only predictions and are subject to certain risks, uncertainties and assumptions that could cause actual results to differ from those in the forward looking-statements. Potential risks and uncertainties include such factors as uncertainty of consumer demand for the Company's products, as well as additional risks and uncertainties that are identified and described in the Company's SEC reports. The company will need to raise additional financing in order to advance its exploration and drilling program. Actual results may differ materially from the forward-looking statements in this press release. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company does not undertake, and it specifically disclaims, any obligation to update any forward-looking statements to reflect occurrences, developments, events or circumstances after the date of such statement.