AMGAS to Ato acquire Aabout 52, 000 Acreate the lease Located Pmainly in Central Kansas Uplift. The Ca companytoo Aacquires Ooption at Ato acquire Related Petroleum service company sserves Kansas Producers for over 40 years.
Lenexa, KS, November 10, 2021 (GLOBE NEWSWIRE) – American Noble Gas, Inc. (OTC-QB: IFNY) (âAMGASâ or the âCompanyâ). An independent oil, natural gas and helium exploration and development company announced today that it has acquired an option to purchase the rights to produce and lease oil and gas properties primarily in the uplift Central Kansas covering over 52,000 acres (the âPropertiesâ). The option to purchase gives the Company the right to acquire the properties from the owner for $ 12 million in cash by December 31, 2021. The option also gives AMGAS the right to acquire a related oil services company for $ 4 million in cash by December 31. , 2022.
Properties assessed by AMGAS include the production of several oil wells currently producing 280 barrels of oil per day, natural gas wells producing 1.8 million cubic feet of natural gas per day, including 40,000 cubic feet of helium per day. day. AMGAS ‘interest in the properties is tied to the approximately 43,000 acres of the properties that contain significant helium content between 1.5% and 6% which AMGAS says will complement its strategic plan to become a major producer of noble gases in the United States. If the acquisition is completed, the properties will provide AMGAS with the ability to drill new wells for traditional oil and natural gas production as well as noble gas production and to implement secondary recovery projects such as flooding. in existing production fields. The gas gathering pipeline infrastructure is expected to provide a significant benefit to the Company’s recently acquired 11,000 acre oil and gas property in the central Kansas Uprising by providing a gas gathering and compression system to market the gas. natural, helium and other rare gases produced by the company recently acquired 11,000 acres of oil and gas properties.
AMGAS also acquired an option to acquire an oilfield services company that has served the Kansas oil and gas community for more than 40 years. If completed, the acquisition will include retail stores, well cementing services, acidification and small fracture treatment services, cased hole logging and drilling services, mining services, oil well maintenance and completion, propane sales and delivery services as well as many other ancillary well maintenance companies. The purchase of the petroleum services business will provide AMGAS with many advantages over its current properties and future acquisitions, including that under the vested option.
Stanton E. Ross, Chairman and CEO of AMGAS, said, âThe company could not be happier to announce that AMGAS begins to execute its newly adopted strategy by pursuing properties that support our goals to become a major producer of noble gas in the United States. In particular, the properties we are evaluating could, if we close, provide us with a substantial and profitable traditional oil and gas business that enhances our recently acquired Central Kansas properties as well as the continuation of our strategic exploration, development plan. and production of noble gas materials including helium. Our recent partnership agreement with US Noble Gas. LLC teams us with experts in the exploration, development and production of such noble gas reserves and is expected to enhance the development and production of noble gas resources which we already know exist on the properties. We believe that the helium and other rare gases potentially present on our properties in central Kansas, along with the proven reserves on the acquired properties, will contribute to our vision of becoming a major producer of helium and other noble gases. . Helium is a rare rare gas of considerable value compared to natural gas (methane). It is used in many high value added applications such as MRI coolants, space exploration and microchip manufacturing. The world is currently facing a high-profile helium shortage and the world is in need of helium. The Company will continue its quest to add additional properties that show the potential for significant noble gas reserves, including helium, and will report on our progress in future updates, âconcluded Mr. Ross.
On American noble gas, Inc .:
American Noble Gas, Inc. recently acquired current oil and gas production and mineral rights of approximately 11,000 acres in the Otis / Albert field located on the Kansas Central Uplift. AMGAS focuses on the exploration, development and production of rare gases and in particular helium as well as traditional oil and natural gas. Prior to the recent acquisition, AMGAS was involved in oil and gas exploration, development and production of natural gas and petroleum in Texas and the Rocky Mountain region of the United States, as well as an oil services company located in eastern Kansas, in northern Oklahoma. , Colorado and Wyoming prior to December 2012. AMGAS was founded in 1987, is headquartered in Lenexa, Kansas, and its common shares are listed on the OTC-QB under the symbol “IFNY”. The Company’s financial statements and additional information are available on the Internet at www.otcmarkets.com.
This press release includes statements that may constitute “forward-looking” statements, generally containing the words “believe”, “estimate”, “plan”, “expect” or similar expressions. These statements are made in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties which could cause actual results to differ materially from forward-looking statements. The forward-looking statements contained in this press release include the following: whether the company will be successful in exploring for noble gases, including the development of commercially efficient production from its noble gas reserves, develop the oil and gas reserves of oil and gas properties; whether the TORP deal will provide the desired beneficial engineering and development data to increase oil and gas production from oil and gas properties, whether the company will be successful in the oil well repackaging / stimulation business and existing gases which result in an increase in the production of the Properties; whether the Company will be able to execute its exploration and development plans for the properties, including obtaining the required financing; whether the financing required for the exploration and development of the properties can be obtained on terms favorable to the Company and its shareholders; the amount of hydrocarbons under the properties and whether they can be economically extracted; the accuracy of the consultants’ preliminary analysis and estimate of recoverable oil and gas reserves (including noble gas reserves) on the properties and their underlying assumptions; whether or to what extent the geological area concerned contains hydrocarbons and / or rare gas; the inability to predict, prior to drilling and testing, whether a particular prospect will produce oil in sufficient quantities to recover the costs of drilling and / or completion or to be economically viable; the fact that the process of estimating the quantity of oil in a prospect is complex, requiring the interpretation of available technical data and many assumptions; the potential for material inaccuracies in these interpretations and assumptions which could significantly affect the estimates of the Company or those of its consultants; the need to base estimates on available geological, geophysical and technical data, the quality and reliability of which may vary; the inherent lack of precision in the estimates regarding the amount of noble oil and gas in the Kansas development project due to the above; whether the Company will be successful in exploring the existence of mineral reserves other than oil and gas in commercial quantities, including the development of the underlying reserves of those reserves and its ability to find a qualified partner, if necessary, with whom to continue its exploration and development program on terms and conditions acceptable to the Company; the Company’s ability to extract oil and gas from the properties and the technical and other costs and challenges of oil extraction Properties; fluctuations in oil and gas prices, unexpected negative geological deviations, government uncertainties in Kansas; operational risks, delays and problems, availability of services on acceptable terms, results of drilling and completions; amends US oil and gas regulations; and actions of creditors relating to the debt or other financial obligations of the Company; and its ability to resolve its liquidity and equity needs. Additional information regarding factors that could have a material impact on the Company and its activities is contained in its annual report on Form 10-K for the year ended December 31, 2020 and in its quarterly report on Form 10-Q for three and six months ended in June. 30.2021 as filed with the Securities and Exchange Commission.
For more information, please contact:
Stanton E. Ross, CEO, at (913) 814-7774
John Loeffelbein, COO, at (913) 804-5870