Message #19 From:
NewsBot Date: March 2, 2007 07:29:00 AM
MVOG News Maverick to Sell Barnett Shale Properties for $22.5 Million
DALLAS--(BUSINESS WIRE)--Maverick Oil and Gas, Inc. (OTCBB:MVOG) today announced that it has signed a Purchase and Sale Agreement for the sale of its interest in Barnett Shale properties for $22.5 million. These properties are located in Wise County, Texas.
Approximately $20 million of the proceeds of the sale of these properties will be used to repay a portion of our outstanding debentures and the remainder will be used for capital programs and working capital. Closing is expected to occur in early April 2007 following normal due diligence which is currently ongoing. This sale was required as part of the company’s earlier financings. The holders of our outstanding debentures originally required the closing to occur on or before February 28, 2007. They have agreed to extend this timeframe until the actual closing date without any penalties. The company is in discussions with these debenture holders to restructure the remainder of our outstanding indebtedness.
James A. Watt, Chief Executive Officer of the Company, stated, “This sale allows us to reduce our overall debt and increase our operating flexibility. We will now be seeking new properties with near term cash flow to support our operations and complement our long term resource play in the Fayetteville shale of Woodruff County, Arkansas.”
About Maverick Oil and Gas
We are an early stage independent oil and gas company engaged in exploration, exploitation, development and production. We currently participate in these activities through the interests we hold in oil and gas exploration and development projects in Arkansas, Texas and Colorado. We will seek to acquire other exploration and production properties and from time to time sell or trade interests in properties in an effort to maximize value for our shareholders. For more information about the Company, please visit our website at www.maverickoilandgas.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding future results, levels of activity, events, trends or plans. We have based these forward-looking statements on our current expectations and projections about such future results, levels of activity, events, trends or plans. These forward-looking statements are not guarantees and are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, events, trends or plans to be materially different from any future results, levels of activity, events, trends or plans expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as guidance, may, will, should, could, would, expect, plan, anticipate, believe, estimate, continue or the negative of such terms or other such expressions. Important factors relating to the transaction covered by this release that could cause actual results to differ materially from our expectations, include but are not limited to: (1) completion of the pending transaction as contemplated, with the recognition that closing is subject to customary closing conditions, including the buyer’s due diligence review, certain of which may be beyond our control; and (2) our assumption that the transaction will close on the commercial terms expressed in this release, although the purchase agreement contains certain customary price adjustments. Other important factors that could have an effect on our business could cause actual results to differ materially from our expectations. These include but are not limited to: (1) our ability to restructure the payment and other relevant terms on the balance of our secured convertible debentures in a manner that will maintain the Company as a viable concern after the sale of our Barnett Shale properties; (2) our ability to locate and finance the acquisition of income producing properties in the future sufficient to maintain the Company as a viable concern, given our currently limited capital resources; (3) our ability to find industry partners or otherwise facilitate the commercial development of our interest in the Fayetteville shale play; (4) our ability to sustain operations for a period of time necessary to implement certain of our development plans, given our currently limited resources; (5) whether ongoing or projected drilling efforts can be completed within our estimated time and cost budgets in view of the risks and uncertainties normally associated with drilling projects; (6) whether ultimate production from these efforts may be achieved, and if so, in a manner consistent with either initial test results or our expectations, given the uncertainties associated with drilling and extraction of oil and gas reserves; (7) whether long term test results will justify the drilling of additional wells; (8) when such additional wells may be drilled; and (9) in general, our ability to locate projects deemed attractive by management and our the ability to drill for and extract commercial quantities of oil and gas on these projects. As they pertain to our business, in general, important factors that could cause our actual results to differ materially from our expectations, include but are not limited to those factors disclosed in our annual report on Form 10-K, our other filings with the Securities and Exchange Commission, as well as our other public documents and press releases which can be found on our web site (www.maverickoilandgas.com). Readers are cautioned not to place undue reliance on our forward-looking statements, as they speak only as of the date made. Such statements are not guarantees of future performance or events and we undertake no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances occurring after the date hereof.
