Exterra Energy, Inc. Announces New Management Acquisition Strategy, Asset Purchase, Reverse Stock Split
On Monday April 27, 2009, 2:20 pm EDT
AMARILLO, TX--(MARKET WIRE)--Apr 27, 2009 -- Exterra Energy, Inc. (OTC BB:EENR.OB - News) announced today that on April 15, 2009, the Company's Board of Directors approved an agreement for the acquisition of certain mineral leases with proven undeveloped oil and gas reserves in the Newark East (Barnett Shale) Gas Field of North Texas, in consideration of the payment of 5,603,577 shares of restricted common stock of the Company following the effective date of a reverse stock split by the Company.
Todd R. Royal, President of Exterra Energy, Inc., "I am very excited about the future of Exterra Energy with our most recent acquisition consisting of mineral leases with proven undeveloped oil and gas reserves. The Engineering Firm of Harper and Associates has identified 6 PUDS, on the leases, in Parker and Jack Counties, Texas. With these recently acquired assets we will improve the company balance sheet significantly and immediately begin our development and acquisition roll up strategy of acquiring undervalued oil and gas assets to increase shareholder value." Mr. Royal went on to state, "The value of the properties acquired was based upon the discounted value of the proved undeveloped reserves done by a third party, Harper and Associates, and the trading price of the Company's shares."
Robert Royal, Chairman and CEO, commented, "We are very pleased with the recent board decisions including the approval of the above transaction April 15, 2009, at the Special Director's Meeting, and on April 15, 2009, the Company's Board of Directors approved a 60 for 1 reverse stock split of the issued and outstanding shares, to be effective at the beginning of trading May 4, 2009." Mr. Royal went on to state, "Our strategy for the company in the public markets is to improve the company's balance sheet through development of the Company's mineral assets and strategic acquisitions of undervalued properties, by using our assets, equity marketing, commercial banking relationships and stock restructuring to improve earnings per share and move the public company to a senior exchange."
About Exterra Energy, Inc. (OTC BB:EENR.OB - News) is an emerging oil and gas exploration production company based in Amarillo, Texas, with a Field Office in Parker County, Texas. Exterra is committed to a strong acquisition strategy purchasing producing oil properties that are undervalued due to current market conditions. Exterra is primarily active in the development, acquisition and operations of oil & gas properties, including the Newark East (Barnett Shale) Gas Field in North Texas and now holds an undivided interest in approximately 17,750 gross acres of leases in the Newark East (Barnett Shale) area with over 63 wells producing on the acreage. The Company is also active in Permian Basin in West Texas with mineral acres, producing oil and gas wells, wells being put online and chemically treated, a new Saltwater Disposal Facility, a 12 mile gas gathering system and a new gas contract with Panther Pipeline and Southern Union, that will increase production in Pecos County. The Barnett Shale gas field is undoubtedly one of the largest producing gas fields in the continental U.S. today, and Exterra is committed to developing and expanding its acreage and assets within the core area of the field. Exterra is further committed to increasing its oil assets by acquiring additional producing oil wells in the Permian Basin in West Texas, as well as other areas. Exterra's strategic plan is to take advantage of the opportunity that exists in the oil industry today by acquiring, undervalued producing oil wells, since many in the Oil Industry are heavily leveraged.
The Company and its representatives may from time to time make written or oral forward-looking statements, including statements contained in the Company's filings with the SEC and in its reports to shareholders. One can identify these forward-looking statements by use of words such as "strategy," "expects," "plans," "anticipates," "believes," "will," "continues," "estimates," "intends," "projects," "goals," "targets" and other words of similar meaning. One can also identify them by the fact that they do not relate strictly to historical or current facts. These statements are based on our assumptions and estimates and are subject to risks and uncertainties. In connection with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, the Company is hereby identifying important factors that could cause actual results and outcomes to differ materially from those contained in any forward-looking statement made by or on behalf of the Company.
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