10:27 AM ET 6/2/17 | Dow Jones
SCOTTSDALE, Ariz., June 2, 2017 /PRNewswire/ -- Delta International Oil and Gas, Inc. (OTCQB: DLTZ) ("Delta") is pleased to announce that it has closed its first investment in Second Chance Oil (SCO). The investment was made via an 18-month 9% Promissory Note. Additionally, Delta will hold a 3.5% equity interest in Second Chance Oil.
This note is intended to fund the first two rework gas wells that SCO has proposed to drill in June on a northern California property. The wells have historically produced from the lower formation- the K1- leaving other formations untouched. The first rework will cap the current production from the K1 reservoir, and will perforate two other reservoirs- that have not produced yet. The second rework will follow a similar plan. SCO has already contracted Snows OilField Services to perform the workovers.
"Although there may be some energy-related technology aspects that we might eventually explore, there are E&P opportunities here in the US that could bring the Company substantial value," stated Santiago Peralta, CEO of Delta. "As we keep progressing in the sale of our properties in Argentina, this is an excellent first step to build a US-focused energy portfolio. We look forward to executing our inorganic growth strategy over the next 24-36 months."
About Second Chance Oil, LLC
SCO is an oil and gas company that focuses on workover projects in California. Its management team is composed of geologists, drillers, and land men that have around 200 years of oil and gas experience in northern California. SCO's current project involves a potential of up to 20 workover wells in a gas field close to Sacramento that has produced over 200 BCF of natural gas and is still in production.
Forward Looking Statements
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