Viking Enters Into Purchase Agreement to Acquire Working Interests in Multiple Leases Covering 6,000 Acres in the Cherokee Basin and Including Over 100 Producing Oil Wells
NEW YORK, NY -- (Marketwired) -- 09/14/15 -- Viking Investments Group, Inc. ("Viking") (OTCQB: VKIN) is pleased to announce it has executed an agreement to acquire a working interest in various oil and gas-related leases in Kansas and Missouri (the "Agreement").
The Agreement, dated effective September 3rd, 2015, contemplates Viking acquiring: (i) a working interest in nine leases in respect of which the lessees have access to the mineral rights (oil and gas) concerning approximately 1,071 acres of property in Kansas (collectively, the "Kansas Leases"); (ii) a 50% membership interest in Mo-Energy, LLC which in turn has leased the mineral rights to approximately 5,500 acres of property in Missouri (the "Missouri Property"); and (iii) an undivided interest in all oil and gas wells, equipment, fixtures and other personal property located upon the Kansas Leases and Missouri Property and used in connection with oil and gas operations upon the leases attributable to the working interests being purchased by Viking.
Viking's working interest in the Kansas Leases will range from 24.97% to 70% (with an average of 50%) and its share of existing production will be approximately 30.69 bopd. Viking and the other lessees have formulated a conservative, phased drilling program for the Kansas Leases and Missouri Property, the first phase of which contemplates the drilling of approximately 23 new producing wells and 12 new water-injection wells within the 3 to 5-month period following the closing of the transaction, which is anticipated to more than double current oil production at the properties.
The Agreement, which is conditional upon financing, provides that the vendors will receive an aggregate cash consideration of USD$2,042,548.00 along with 7,558,499 common shares of Viking. The deal is expected to close on September 30th, 2015.
"We are obviously excited about acquiring existing oil production and improving our balance sheet, but truly the most exciting aspect of the arrangement is the relationship we have established with the other project participants. They are such a dynamic group. Not only are they intimately familiar with the oil and gas industry on a macro level, but their local industry knowledge and overall business network are unparalleled." said James Doris, Viking's President and C.E.O.
Mr. Doris also noted "I strongly believe this particular deal and the relationship with the other stakeholders will create several profitable opportunities for Viking and its shareholders for years to come."
Viking aims to acquire, invest in and/or provide professional advisory and consulting services to companies undergoing or anticipating periods of rapid growth, significant change or ownership transition. Viking's primary focus is directed toward evaluating and completing investments in North America, mainly in the Oil & Gas sector. Viking targets under-valued investments with realistic appreciation potential and a defined exit strategy.
Viking is not an investment company, as defined by the Investment Company Act of 1940.
Safe Harbor Statement
This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company's financing plans; (ii) trends affecting the company's financial condition or results of operations; (iii) the company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk disclosed in the company's Forms 10-K and 10-Q filed with the SEC.
For additional information please contact:
James A. Doris
President and C.E.O.
Viking Investments Group, Inc.
1330 Avenue of the Americas, Suite 23A
New York, NY 10019
Source: Viking Investments Group, Inc.
Released September 14, 2015