DKGR -- Drake Gold Resources Inc. Announces 100% Acquisition of Pegasus Oil Well Services as the First Part of the Expansion Into Oil and Gas Development
CENTURY CITY, CA, Jun 06, 2006 (MARKET WIRE via COMTEX) -- Drake Gold Resources Inc. (PINKSHEETS: DKGR) is pleased to announce the acquisition of Pegasus Well Services, scheduled to be completed within two weeks. Pegasus is a San Antonio-based company that services all of South Texas with a growing list of oil services. (http://www.pegasusoilwellservices.com)
Estimations of revenues for 2006 will be released after evaluation is completed of audited financials and the operations. The acquisition will make Drake a profitable company. The acquisition is being done for all stock, which is restricted for 2 years.
The company plans to expand operations to include complete well services for wells above 10,000 ft. in depth including acidization treatments, cementing, and drilling operations. Pegasus is a growing service provider specializing in shallow oil, gas, and water wells in the South Texas area.
The company began operations in November of 2001 with the first several months being devoted to training personnel, acquiring, and modifying needed equipment. The company became more active over the first 3 years, solidifying its foundation in 2004. Operating with only one cementing unit, its sales for 2005 exceeded $600,000 over a shortened year due to a mechanical rebuild of its main unit.
With the addition of Pegasus, Drake plans on adding additional cementing units, hydraulic fracturing units, drilling rigs, and other needed services, with the intent of becoming a one-stop shop for the oil business. With the growing demand for oil and gas operations in the Texas arena, revenues are expected to continue to rise.
For Drake, the addition of a full-service oil well company will make the advancements into oil and gas development hastened and is lowering capital needed to begin operations. The market today makes it very difficult to schedule equipment needed to perform these services so having them in-house gives Drake the ability to move consistently from project to project without any delays while minimizing risk.
Furthermore, Drake has already made a series of advancements into acquiring oil and gas leases, projects and potential joint ventures to build its portfolio of petroleum operations. The current acquisition and connections already within the industry have located prime targets in South Texas, the Barnett Shale in Texas, California and Louisiana. With the new service division it makes it very easy to obtain projects for low costs and entice current operators to entertain joint ventures.
This is in tune with its recently announced corporate strategy, which is partially outlined here:
"DKGR intends to be a diversified company by operating in the natural resource, petroleum, and alternative energy markets. As a result of ever-increasing scarcity, the market for natural resources is clamoring for diversification and innovative exploration tactics. Potential opportunities for diversification include diamond, gold, silver, copper and other minerals in areas such as Arizona, Oregon, Alaska, British Columbia, the Yukon Territories, and other affiliated sections throughout gold districts in Northern Mexico. DKGR also plans to capitalize on current and long-term trends in energy prices to operate in the petroleum and alternative energy markets."
The Drake team believes acquiring Pegasus Well Services is a step in the right direction -- it minimizes the risk of oil and gas exploration while building solid well-margined cash flows.
Current and future shareholders are encouraged to sign up for email updates. The new Company website provides current news releases, reports, interviews, industry news and market related information. To sign up, click on the link located under the main menu at www.drakegold.com.
Shareholder inquiries and suggestions are welcome and should be directed to the Drake Gold, Investor Relations Team at (toll free) 1-888-601-9983, internationally at 1-503-618-0370, or via email at info@novakcapital.com.
About Drake Gold Resources, Inc.
Drake Gold Resources, Inc. (http://www.drakegold.com) is an early-stage mining and energy company that focuses on the exploration and production of precious metals, diamonds and energy, such as petroleum and coal. Several projects have been identified through Thunder Gulch Resources, Ltd. and its resources in North America. Drake is in the process of completing the acquisition of Pegasus Oil Well Services. (http://www.pegasusoilwellservices.com) Announcements will be made as agreements are completed.
Investor Relations Hotline
Domestic: 1-888-601-9983
International: 1-503-618-0370
Email: info@novakcapital.com
SOURCE: Drake Gold Resources Inc.
CONTACT: mailto:info@novakcapital.com
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