Adino Energy Corp., an emerging oil and gas exploration and production company, today announced its acquisition of San Angelo, Texas-based PetroGreen Energy LCC and Petro 2000 Exploration Co., collectively “Petro Energy.”
As a licensed Texas Oilfield Operator, Petro Energy currently operates 11 wells on two leases spanning roughly 300 acres in Coleman County, Texas. The company also owns a drilling rig, two service rigs and associated tools and equipment.
According to the press release, the area in which the leases are located has generated active oil production from multiple pay zones since the 1950s. Adino says that while reservoir pressure has dropped over time, it believes significant oil remains in place, and has plans for a waterflood project to “substantially increase both daily production and economically recoverable reserves.”
“We are thrilled to have completed this acquisition as it marks Adino Energy’s reentry into the oil & gas production industry,” Timothy G. Byrd, Sr., Adino CEO stated in the press release. “With our fuel terminal operation providing strong, stable cash flows, we are now focusing on oilfield redevelopment opportunities where we believe we can create significant value for our shareholders.”
Per the deal, Adino purchased a 100% of the membership interests of Petro Energy for 10 million shares of Adino common stock, which will remain in escrow until shares reach $0.25. If Adino’s stock price fails to reach $0.25 per share within three years, there is a clawback provision, limited to Petro’s drilling rigs and equipment.
Byrd said he believes shareholders will “appreciate the sellers’ willingness to execute the deal” at the set price of $0.25, and believes that they will agree to retain their stock in escrow until that price is met.
“Not only is this a vote of confidence from experienced oil & gas investors, it also significantly reduces dilution for existing shareholders,” Byrd stated.
For more information visit www.adinoenergycorp.com
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