Pacific Energy & Mining Company announces the approval by the shareholders of Colorado Utah Natural Gas, Inc. to sell its oil and gas assets to Pacific Energy & Mining Company for stock and assumption of certain debts.
In conjunction with the transaction, Colorado Utah Natural Gas, Inc. has withdrawn its registration statement from the United States Securities and Exchange Commission.
The companies will complete the transaction by March 15, 2007. The transaction will result in Pacific Energy having a present value of $80 million in oil and gas reserves over the life of the field. Pacific Energy will take over operations of the oil and gas properties.
After issuance of the additional shares to the shareholders of Colorado Utah Natural Gas, Inc., the Company's reserves from the acquisition will be approximately $3.00 per share net present value as per the reserves determined by Colorado Utah Natural Gas, based upon prices of $60 per bbl of oil and $8 per MCF of natural gas.
Pacific Energy & Mining is a diversified company with oil and gas including interests in Utah through its current acquisition of the assets of Colorado Utah Natural Gas, Inc. (www.coloradoutahgas.net), a 7% working interest in the Brennan Bottoms Oil Field in Uintah County, Utah, and a 50% revenue interest in the Cisco Springs Oil Field in Grand County, Utah.
The Company also owns a 16.67% interest in Mar/Reg Investments, a General Partnership, through which it holds working interests in oil wells in the Altamont Bluebell Oil Field in Utah and in numerous oil and gas wells in Oklahoma.
Pacific Energy also owns 80% of the outstanding shares of Pakistan Chrome Mines Ltd., a mining company with interests in over 34,000 acres of chromite and magnesite leases in Baluchistan, Pakistan. The leases mineral reserves contain an estimated 4 million tons of chromite and magnesite.
Disclaimer
The foregoing contains forward-looking information within the meaning of The Private Securities Litigation Act of 1995. Such forward-looking statements involve certain risks and uncertainties. The actual results may differ materially from such forward-looking statements. The company does not undertake to publicly update or revise its forward-looking statements even if experience or further changes make it clear that any projected results (expressed or implied) will not be realized.
Source: Pacific Energy & Mining Company
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