Well, this represents the first news release I have ever seen for Nutek. Maybe this is why the price has been going up.
NUTEK, INC. SUBSIDIARY ACQUISITIONS
IRVINE, Calif., Dec. 12 /PRNewswire/ -- NuTek, Inc. (Nasdaq BB Symbol:
NUTK) announced agreements to purchase 71 wells today, bringing total
number of wells owned to 178. It also has interests in 66 wells through
a joint venture. Twenty-five wells are being purchased through
Vac-U-Lift Production Company, Inc. in the Bigfoot field in South Texas.
This 660 acre purchase will add significant reserves to NuTek's
holdings. The company intends to selectively open up two pay zones in
these 25 wells that should boost cash flow in its Texas operations. The
wells produced from 20 to 102 barrels per day when initially drilled and
all wells drilled on this lease were commercially successful. The
Company feels that this property is a high probability, high return,
location upon which to drill additional wells. A step-out well is
planned in the near future.
Vac-U-Lift Production Company, Inc. has also purchased 20 additional
wells in the Pearsall Austin Chalk Field on 1,300 acres and NuTek, Inc.
has purchased 26 wells on 1,920 acres in Creek County, Okla. The
company intends to install its proprietary "Bailer Pumps(R)" to operate
these wells. After these acquisitions, Vac-U-Lift Production Company,
Inc. will own and operate 97 wells in Texas.
In July, 1996, NuTek, Inc. purchased Vac-U-lift Production Company, Inc.,
a Texas corporation, producing oil from the prolific Austin Chalk
Formation. The purchase included 52 wells and associated production
equipment, as well as the stock of Vac-U-lift Production Company, Inc.
Through its swabbing trucks and proprietary "Bailer Pumps(R)," NuTek,
Inc. holds a distinct competitive advantage over the average oil
production company.
"We are also examining opportunities to diversify into the oil service
business. The recent rise in oil prices has sparked renewed drilling in
Texas and Louisiana. We feel that this diversification will allow us to
take advantage of this increased drilling activity and provide an
'in-house' arm with which to exploit our existing acreage. We plan to
continue acquiring new wells and acreage and several additional leases
are currently being negotiated," said Rodger Garrity, President.
SOURCE NuTek, Inc.
-0- 12/12/96 /CONTACT: Britt Brooks,
210-769-4146; Rodger Garrity, 714-955-1411, both of NuTek, Inc./
(NUTK)
CO: NuTek, Inc.; Vac-U-Lift Production Company, Inc. ST: California
IN: OIL SU: TNM
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