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Exobox Announces It has Entered Into a Letter of Intent to Acquire $22.5 Million of Proven Reserves
Date : 10/14/2009 @ 8:23PM
Source : PR Newswire
Stock : (EXBX)
Quote : 0.038 0.0241 (173.38%) @ 7:15PM




Exobox Announces It has Entered Into a Letter of Intent to Acquire $22.5 Million of Proven Reserves

HOUSTON, Oct. 14 /PRNewswire/ -- Today Exobox Technologies Corp. (OTC Bulletin Board: EXBX) (the "Company") announced that one of its board members has identified and assisted management in entering into a non-binding letter of intent to acquire 15 income producing oil & gas wells in the Clinton and Marcellus Shale region in Ohio from a private oil & gas company. These oil & gas wells have a represented PV10 reserve value of approximately $22.5 million (based on current NYMEX pricing). It is intended that the cash flow and net worth from the oil and gas assets will assist to further develop the Company's software products and technologies, as well as those oil and gas assets being acquired. The parties intend on executing a definitive agreement on or before October 19, 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20090508/LA13785LOGO)

"Upon the closing of the transaction, this will enable Exobox to continue its operations as originally planned. It should provide us critical mass and bring substantial asset value to the Company," said Exobox CEO, Kevin Regan.

The non-binding letter of intent contemplates a purchase price of approximately $13.25 million which includes the assumption of existing debt in an amount not to exceed $3 million, as well as the issuance to the seller of a combination of convertible notes, convertible preferred stock and common stock that on a fully-converted basis would not exceed 9.9% of the total shares outstanding of the Company.

This is a non-binding letter of intent, subject to completion of due diligence by both parties and negotiation of definitive agreements, and there can be no assurance that a definitive transaction will be entered into between the parties incorporating these or any other terms.

Cautionary Statement Relating to Forward - Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995. This release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act