PEYG Pluris Energy Provides Corporate Update
Tuesday November 14, 7:25 am ET
HOUSTON, Nov. 14 /PRNewswire-FirstCall/ -- Pluris Energy Group Inc. (OTC Bulletin Board: PEYG - News) is pleased to update its shareholders with further details related to corporate developments that the Company first disclosed in its September 12, 2006 new release.
As previously announced, Pluris Energy has redefined its business model to better exploit the Company's opportunities and skill sets. As such, Pluris Energy is focusing on the acquisition of non-operated, producing oil and gas interests in international high-profile areas, which management believes benefit our shareholders by specifically and more gainfully employing management's core competencies, expertise and spheres of influence in the areas of international energy business development and finance.
To date, Pluris has focused its international business development interests on the Southern Cone region of South America and specifically in Argentina, largely due to its profile as being relatively under-explored with significant reserves and steady to high production growth potential with moderate to low risk. These unique attributes provide for substantially higher rates of return on investments for pioneering oil and gas enterprises like Pluris Energy. With only five out of nineteen hydrocarbon bearing basins currently in production and billions of dollars in energy investment recently committed by international energy development companies, Argentina can provide our shareholders a foundation to access attractive existing opportunities as well as excellent ground floor exploration prospects towards potentially developing a significant opportunity platform in this rapidly expanding, yet under-developed region.
Pluris Energy has already made significant inroads in Argentina by entering into a Shares Purchase Agreement to acquire San Enrique Petrolera, SA (San Enrique), an oil and gas upstream and midstream company located in Buenos Aires, Argentina, as previously announced in our September 12, 2006 news release. San Enrique controls over 251,000 net acres of producing oil and gas fields, representing 3P reserves estimated at approximately 49 million barrels of oil equivalents with current net production of over 1,000 barrels of oil equivalent per day.
As part of the Company's overall growth agenda and business mandate, Pluris Energy plans to make a number of South American acquisitions of producing hydrocarbon interests in the future with similar characteristics and metrics to those of San Enrique's. As such, we have strengthened our corporate structure to reflect these new opportunities. Most specifically, the company has completed the following changes:
* On September 12, 2006, Pluris Energy completed a five-for-one
consolidation of its common shares, providing for a more expansive
platform upon which to build our new business model upon.
* On September 12, 2006 the Company announced the offering of a
$65,000,000 convertible, non-retractable, redeemable unsecured bond for
the purpose of financing the acquisition of as many as two
international revenue producing oil and gas opportunities similar to
that of San Enrique. The Pluris Bond "A" is structured in a manner that
could, upon the successful completion of target acquisitions,
dramatically impact shareholder value with only marginal dilution to
the common shares of the Company due the Bond's phased conversion at
prices ranging from $3.25 to $9.25 per share over the next five years.
* In October, 2006, Pluris Energy increased its authorized capital
structure from 20,000,000 common shares to 250,000,000 common shares
and 100,000,000 preferred shares. This ensures the Company's long-term
flexibility in raising capital and acquiring assets to fulfill our
growth mandates for years to come, without immediate dilution to the
common share capital of the Company until capital asset values are
appreciably realized.
* Pluris Energy's plans to register and list its common shares through an
Initial Public Offering (IPO) on the Oslo Bors are currently on-track.
The Oslo Bors is one of the fastest growing stock exchanges in the
world and most notably one which is most aligned with the value
principles associated specifically with the energy industry. We
anticipate that listing Pluris Energy's common shares on the Oslo Bors
could provide our shareholders with superior quality of order
execution, a more orderly market providing increased liquidity and
potentially greater access to an expanded sphere of sophisticated and
active international energy investment communities. Pluris Energy's
common shares will continue to be quoted in the United States
subsequent to the planned IPO on the Oslo Bors.
Pluris Energy's Chairman and Chief Executive Officer, Sacha H. Spindler, stated, "In light of the very unique and significant opportunities that we have positioned Pluris Energy to benefit from, and as we make corporate changes to ensure those opportunities can be fully captured, it is also important to recognize and address the challenges that helped shape our new business model and corporate directives. In that regard, over the past few months our share price has lost value after several million shares were sold in the Company's market following management's decision to release the Company from non-performing finance agreements. This situation was compounded by difficulties in developing our Texas Gulf Coast assets due to increased competition in an already tight market for drilling rigs and crews. Facing these challenges led us to reassess our core competencies and our future business directives. Our new directives better utilize management's skills, experience and spheres of influence in a more focused and effective manner that could result in direct impact to the realization of a substantial revenue platform that we believe will provide for stable long term value growth for our shareholders."
Mr. Spindler further stated, "We look forward to making announcements about our progress related to our South American acquisition mandate soon and thank our shareholders for their patience and support as we continue to work toward the fulfillment of the Company's new business plans."
About Pluris Energy
Pluris Energy Group Inc. is an international energy company engaged in the acquisition and development of non-operated producing oil and gas interests in global high profile development plays. Pluris Energy is also investing in the research and development of energy efficiency technologies aiming to maximize the diversification of the worldwide energy grid. For further information, please visit the Company's website at www.pluris.com
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