Geotec Thermal Generators, Inc. Announces Joint Venture with Sierra Corporation for Well Asset Acquisition and Improvement
BOCA RATON, Fla.--(BUSINESS WIRE)--Aug. 20, 2002--Geotec Thermal Generators Inc. (OTCBB:GETC - News) announced a Joint Venture with Sierra Corporation, of Magnolia, Arkansas, whereby Sierra will initially pay $1 Million for Geotec's services. The scope of the services includes; well evaluation for acquisition, well enhancement design and implication of Geotec's gas generator technology to determine which wells will be acquired by Sierra for treatment by Geotec's process. Geotec will treat the acquired wells on a fee for service basis, subsequent to Sierra's acquisition to increase the production or asset value of each property. Under the agreement, gas generators will be reserved for Sierra, as payments are made by Sierra. The first payment has been received by Geotec from the Sierra financing party. Sierra has funding arrangements executed, which provides $250,000 initially, and an additional $2 Million shortly thereafter from a substantial Geotec investor. Further, the Sierra funding agreement is outlined to establish banking credit lines equal to an additional $10 Million.
Mike Tsutsch, Sierra's President and Chairman stated, "We are very pleased to be able to apply the Geotec services and technology such that we can predetermine the expected production increases, short and long term, for each well or field that we acquire. We feel that this gives us the advantage of acquiring only those wells with better than average increased production potential."
W. Richard Lueck, Geotec's CEO stated, "We are excited about working with Sierra to apply the science of our technology for asset and production enhancement of their oil and gas wells."
Mike Tsutsch has owned and operated oil and gas production companies, and early in his career been employed as a drilling consultant, engineering and sales director of a drilling fluid company. His career has encompassed the oil fields in Texas, Louisiana, Arkansas and Oklahoma, since the middle 1970's, and he is a minor shareholder in Geotec. Mr. Tsutsch's education includes Petroleum Engineering, Marketing and Economics from Louisiana Tech University and Southern Arkansas University.
W. Richard Lueck, Geotec's CEO, manages Lunar Investment Trust, a significant, but not a majority owner of Sierra Corporation, and he has also been requested and accepted engagement as an officer/director of Sierra. Geotec Thermal Generators, Inc. has exclusive rights to the Russian Federation technology for oil and gas recovery developed by the Military Research and Production Facility, FR & PC ALTAI for the Ministry of Geology, for use in North, South and Central America. This unique scientific technology concluded development in 1986, comprising 6500 wells with 14 years of research and development. Over 30,000 wells have been treated with a 70% success rate for oil wells, and a 90+% success rate for gas wells. The technology produces incremental oil yields averaging over 6000 barrels of oil per well, per year. Wells, in certain rock formations, have exceeded 45,000 barrels of oil per well, per year. Other than the Company, only 12 governments have been permitted this technology, including China and India.
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