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OMDA Oil and Gas, Inc.
in Pact to Acquire Interest in Drilling Rig
Friday March 4, 9:32 am ET
MIAMI--(BUSINESS WIRE)--March 4, 2005--OMDA Oil and Gas,
Inc., an oil and gas production company (OTC.PK:OMOG),
through its chairman, Adam Barnett, today announced that the
company has entered into an agreement to acquire a 12.5 %
interest in JKOD Holdings, (JKOD) a recently formed East Texas
based LLC which currently owns and operates an Oil & Gas
Drilling Rig rated to approximately 6,000 ft. Closing is subject
to OMDA completing its due diligence and approval of the transfer
by the majority of the other JKOD owners. Assuming success
of the due diligence and approvals, completion of this transaction
should be within the next three weeks.
Adam Barnett, Chairman stated, "We are very happy to
have this opportunity to further diversify the new OMDA into
this very active sector of the Oil & Gas Industry. With
the historically high prices of Oil & Gas, rigs are in
high demand with long backlogs. Rig operators are able to
get premium prices for drilling as well as in some cases carried
interests in the wells they are drilling. This particular
rig is just completing a rebuild and upgrade and should have
many years of drilling ahead." Barnett went on to say,
"An additional advantage of OMDA's participation in a
rig, is the sometime opportunity to have our production company
'ground floor' participate in wells that JKOD contracts to
drill. Additionally, in the rare instance that the oil operator
that contracts JKOD to drill its well has a cash shortfall
in its obligation to JKOD, OMDA may have an opportunity to
selectively step in."
About OMDA Oil and Gas, Inc.
OMDA Oil and Gas, Inc and it's wholly owned subsidiary's,
OMDA Oil & Gas Management, Inc and Texas OMDA Drilling
& Operating, Inc are in the business of oil and gas production
and lease acquisition. Currently the Company owns average
participation interests approaching 47%, in 355 producing
and non-producing oil and gas wells in Louisiana and Texas,
as well as 100% gross interest in an undeveloped 1,116 acre,
horizontal play in the Panola Field, Panola County, Texas.
This release includes forward-looking statements made pursuant
to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995 that involve risks and uncertainties including,
but not limited to, the impact of competitive products, the
ability to meet customer demand, the ability to manage growth,
acquisitions of technology, equipment, or human resources,
the effect of economic and business conditions, and the ability
to attract and retain skilled personnel. The Company is not
obligated to revise or update any forward-looking statements
in order to reflect events or circumstances that may arise
after the date of this release.
Contact:
OMDA Oil and Gas, Inc.
Adam Barnett, 305-609-2345
omoilandgas@aol.com
www.omogoil.com
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