Empiric Signs New Purchase Letter
DALLAS, Jul 5, 2000 (BUSINESS WIRE) -- Renn Rothrock, President and COO of
Empiric Energy, Inc. (OTCBB:EMPE) today announced that a new letter of intent
has been signed with J Consulting Group, Inc. to purchase the stock of a wholly
owned subsidiary, Confed Oil and Gas, Inc. in a statutory merger.
The purchase price is $7,300,000 in cash and 3,000,000 shares of restricted
common stock of Empiric. The effective date of the transaction is August 1, 2000
and it must be closed by August 25, 2000 or any extension thereof agreed to by
the parties.
Confed owns oil and gas properties in Texas and New Mexico in three separate
fields. According to external engineering reports, proved developed reserves
total 576 thousand barrels of oil and 2.4 billion cubic feet of gas as of June
1, 2000. Total future net revenue at current prices is estimated at $14.6
million dollars and $8.4 million discounted at 10%. Revenues currently are at a
rate exceeding $2.5 million per year and are divided approximately two-thirds
oil and one-third gas. All behind pipe or undeveloped reserves on these
properties are included in the above purchase price.
After the closing of the transaction, Michael Kimbrel and William Jones have
agreed to serve as Directors of Empiric.
Speaking on behalf of Empiric, Renn Rothrock said, "Closing this transaction
coupled with a successful drilling program on our acreage in the Panhandle of
Texas will solidify the asset base of the Company and provide a reasonable basis
for continued growth of both assets and earnings."
Forward-looking statements in this release are made pursuant to the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that such forward-looking statements involve risks and
uncertainties, including but not limited to, volatility of oil and gas prices,
drilling and operating risks, uncertainties about estimates of reserves,
competition, government regulation and the ability of the company to raise funds
and implement its business strategy. These and other risks are detailed from
time to time in the company's reports filed with the Securities and Exchange
Commission.
CONTACT: Empiric Energy, Inc.
James J. Ling, 972/386-4100 |
