ENERGAS info:
Double G Energy Halts Further Development with Energas
2005-01-25 14:21 (New York)
CARROLLTON, Texas--(BUSINESS WIRE)--Jan. 25, 2005
Double G Energy, Inc., a privately held oil and gas
exploration company in Carrollton, Texas, announces that it is
suspending further development of gas wells with Energas Resources,
Inc. (OTCBB:EGSRE) in Kentucky in the Bluegrass Drilling Program.
Double G entered into a contractual agreement on May 28, 2004 with
Energas and its subsidiary TGC, Inc., the Operator, to drill up to 200
wells in their Pulaski County prospect, of which Phase 1 was to
consist of 55 wells. Only twenty of those wells have been drilled to
contract depth but none of these wells have been completed as of this
date.
Double G notified Energas on Oct. 5, 2004 that no more wells would
be funded by Double G until certain goals were met including the
connection and completion of the first 20 wells. Double G has not been
satisfied that sufficient progress has been made to proceed any
further at this time. "We are disappointed with Energas' performance
so far," said Mr. Steve Gray, CFO of Double G. "This project has so
much potential, but there have been too many delays on behalf of
Energas. Energas is in default under our agreement and we believe
there are potentially serious issues of execution and accountability
on the part of management of Energas," he said. "They have repeatedly
failed to meet agreed upon deadlines costing us and our investors
significant revenues. We are considering all possible alternatives to
get these twenty wells completed and producing at the expected levels
represented by Energas to protect our investment." Mr. Gray further
stated, "Double G sincerely hopes this is resolved quickly and
Energas' management will apply themselves to completing our existing
wells. Their credibility has been severely eroded with us and our
investors. We have been very clear with Energas about the importance
of their performance and what needs to be done to produce the wells
correctly. Execution and performance are very important factors to the
overall success of any prospect, and our experience over the past
seven months with Energas has caused us to reconsider our involvement
with them."
Double G is moving forward with its other drilling programs in
Tennessee and expects to commence drilling on those wells during the
first quarter of 2005. Those programs will allow Double G to drill up
to 300 wells over the next three years.
CONTACT:
Double G Energy, Inc., Carrollton
Max Golden, 972-418-1577
-0- Jan/25/2005 19:21 GMT |
