NEWSSS!!
Monday, March 29 2010 6:00 AM, EST MediaTechnics Corporation Announces Letter of Intent to Acquire Montana Based Forward Energy, LLC Business Wire "US Press Releases "
Forward's Oil Reserves Believed to Approximate $13,000,000
BEVERLY HILLS, Calif. --(BUSINESS WIRE)-- MediaTechnics Corporation , (Pink Sheets:MEDT) is pleased to announce that it has entered into a Letter of Intent to acquire Forward Energy, LLC of Billings, Montana .
Forward Energy ("Forward") owns and/or leases oil and natural gas properties in Montana . Forward has made substantial investments to recomplete two wells, and that work has concluded. Forward asserts that these wells have "proved undeveloped reserves" approaching 200,000 barrels of oil. Forward has contracts to sell all the oil it produces at the wellhead, at a discount to NYMEX of approximately $15.00 per barrel. NYMEX oil futures were trading just above $80 per barrel as of March 25, 2010 .
Forward also believes that significant reserves of natural gas exist in the general area of its properties, and these reserves are, generally attendant to existing oil reserves found nearby. Forward makes no claim as to the quantity, if any, of attendant reserves of natural gas, however the potential for additional revenues from the sale of natural gas may exist.
Forward also believes that it has considerable other, unproved, reserves of oil and gas, but has made no estimate of the, quantity, quality or actual existence of any other reserves.
Due diligence is currently being conducted and the details of the acquisition agreement are being determined. The acquisition, if completed, will include consideration consisting of some combination of preferred stock and/or the assumption of debt and commitments to raise the capital necessary to purchase pumping equipment and begin production. For the purposes of financial statement presentation, the operations of Forward will be fully consolidated with the operations of MEDT.
The parties expect to close the acquisition by April 10, 2010 .
In further news, MEDT has posted its December 31, 2009 Annual Report on the PinkSheets News Service website.
Notes about forward-looking statements
Except for any historical information contained herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties.
Certain Statements contained in this release that are not historical facts constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the safe harbors created by that Act. Reliance should not be placed on forward-looking statements because they involve unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied.
Forward-looking statements may be identified by words such as "estimates," "anticipates," "projects," "plans," "expects," "intends," "believes," "may," "should" and similar expressions and by the context in which they are used. Such statements are based upon current expectations of the company and speak only as of the date made. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date when they are made.
Source: MediaTechnics Corporation
