|
OMDA Oil and Gas, Inc.
Executes Letter of Intent to Acquire 1135 Acre Fredericksburg
Prospect in Panola County TX
Tuesday September 7, 8:02 am ET
MIAMI--(BUSINESS WIRE)--Sept.
7, 2004--OMDA Oil and Gas, Inc., an oil and gas production
company (OTC.PK:OMOG), through its chairman, Adam Barnett,
today announced that it has signed a Letter of Intent with
S & H Resources, of Longview TX to acquire an undivided
70% working interest in this hydrocarbon rich, developmental
oil and gas play. From 1970, 51 vertical wells were drilled
on the prospect without a dry hole. But subsequently, the
wells were plugged due to production declines and low prices.
The acquisition is expected to close within a few weeks after
Omda receives clear title opinion and reserve engineering
evaluations of future recoverable oil and gas. After closing,
it is Omda's intention to fully exploit a " horizontal"
drilling program with three wells initially and upon success,
up to an additional six wells. S & H will be both the
operator and drilling contractor for the program. Horizontally
drilled wells, also targeting the Fredericksburg zone, in
nearby leases have proven to be the key to more complete drainage
of this " good porosity but low permeability" sand.
The initial three well program is expected to commence before
year end using a combination of Company, Joint Venture and
Partnership funds.
Adam Barnett, Chairman, stated, " It has now been approximately
one year since I have taken over and begun the restructuring
of Omda. Some highlights of what we have accomplished include:
Significant reductions of the company's outstanding shares,
recently reported second quarter 2004 revenues up over 1500%
from second quarter 2003 yet still only producing from approximately
32% of our 355 currently owned wells, an extensive firming
up of our balance sheet and a significant increase in stockholder's
equity." Barnett went on to say, "I now feel it
is time to take the company to a new level. This S & H
transaction not only gives Omda exposure to a significant
oil and gas play in a hot area but also to a seasoned oil
and gas veteran like Harold Smith, CEO of S & H. We see
Mr Smith's value not only for this play but as an advisor
for our existing wells as well as access to future plays."
Harold Smith, CEO of S & H said, " I am confident
that this LOI will culminate with a completed transaction
that will just be the first of many exciting future opportunities
shared by Omda and S & H." Smith went on to say,
" In the 22 years that S & H has been in existence,
we feel we have a very good handle on the pulse of the Oil
& Gas Industry. Due to expanding worldwide demand for
oil and gas as shown by record well head prices, the future
in our industry looks very promising. With Omda's core well
ownership in Texas and Louisiana along with other prospects
and expertise that S & H can provide, a bright future
for Omda should be ahead".
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.
About OMDA Oil and Gas, Inc.
OMDA Oil and Gas, Inc. is an oil and gas production and lease
acquisition company. Currently the Company owns participation
interests in 355 oil and gas wells in Louisiana and Texas.
Contact:
OMDA Oil and Gas, Inc.
Adam Barnett, 305-609-2345
omoilandgas@aol.com
www.omogoil.com
|
