Here is today's news release
Wednesday February 5 3:11 PM EDT
Isramco, Inc. Acquires Oil and Gas Interests in U.S.
NEW YORK, Feb. 5 /PRNewswire/ -- Isramco Inc announced today that it had purchased for $1,000,000 an interest in Jay Petroleum LLC, and made a capital contribution to Jay Petroleum LLC of $132,640. As a result, Isramco will own 82.9% of Jay Petroleum LLC. Allocation of profits before recovery of capital contributions will be 82.9% and after recovery of those contributions will be 70.06%. The reduction in participation in profits does not affect the amount of the percentage of membership interest. The amount of capital contributions to Jay Petroleum LLC to date is $846,000.
Jay Petroleum LLC owns both operated and non-operated varying working interests in over 50 oil and gas wells in the United States. Independent estimates of the reserves held by Jay Petroleum LLC, which are located in Texas, Oklahoma, Wyoming, Louisiana and New Mexico, are: 120.2 thousand net barrels of proven developed producing oil reserves, 2.1796 billion net cubic feet of proven developed producing natural gas reserves, 222.4 thousand net barrels of proven non-producing oil reserves and 3.1692 billion net cubic feet of proven non-producing natural gas reserves.
In making the acquisition Isramco, Inc. paid $677,500 to N.I.R. Resources, Inc. for its 50% membership interest before recovery of contributions in Jay Petroleum LLC, which becomes 37.5% of the allocation of profits after recovery of the contribution. N.I.R. Resources is a wholly owned subsidiary of Naphtha Israel Petroleum Corp., Ltd. Naphtha Israel Petroleum Corp., Ltd. owns approximately 36.5% of Isramco, Inc.'s common stock and warrants.
Isramco, Inc. also paid $363,750 to Stonewall Resources, LLC for its 25% interest in Jay Petroleum LLC. Allocation of profits before recovery of its portion of capital contributions will be 25% and after recovery of those contributions will be 18.75%.
In addition, Isramco becomes a 35% owner of Jay Management LLC, a management company established to manage certain of the oil and gas properties of Jay Petroleum LLC. Dr. Reuven Hollo, Ph.D., a petroleum engineer from Houston, Texas, will serve as manager of the management company.
Dr. Hollo is manager of Jay Petroleum LLC and president of Jay Resources Corp. and Jay Natural Resources, Inc. Jay Natural Resources, Inc. and Jay Resources Corp. hold the balance of the membership interest in Jay Petroleum LLC. SOURCE Isramco, Inc. |
