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Thursday January 16 11:21 AM EDT
Oilex Acquires 20 Percent of Oil Retrieval Systems, Inc.
HOUSTON, Jan. 16 /PRNewswire/ -- Oilex International Investments Inc
announced today it has acquired a 20 percent stake in privately owned
Oil Retrieval Systems, Inc. (ORSI). ORSI designs and manufactures the
portable swabbing units that OLEX utilizes in its production of oil and
gas at the Revilo Unit, Walker Queen Field and Big Foot Field(s) in
Texas. The agreement calls for OLEX to have a 30-day preferential fist
right of refusal on all spec units built by ORSI for a period of 3
years. The agreement also calls for OLEX to have input on design for
maximum engineering and field utilization of each unit. In a separate
agreement reached by OLEX and ORSI, ORSI has acquired a 25 percent
working interest in the Revilo Unit wells in exchange for providing a
minimum of three oil retrieval (portable) swabbing units. OLEX has taken
delivery of two units and will receive delivery of the third by early
next week. This cooperative agreement will allow OLEX to utilize the
mechanical and engineering expertise of ORSI to more rapidly increase
daily oil and gas production.
To further ensure the availability of portable swabbing units, OLEX has
placed an order for a minimum of five additional units to be built to
specs agreed on by OLEX for delivery in 1997 with the first delivery
expected in April. "In addition, with the shortage of oil field
equipment coupled with rising costs, OLEX intends to reap benefits for
its shareholders from its 20 percent stake in ORSI and the enhanced
production it is getting from its leases by utilizing the Oil Retrieval
(portable) Swabbing Units," management stated.
OLEX is currently ramping up all field personnel staff(s) and training
them for all of its field operations.
OLEX is in the business of acquiring, developing and producing low risk
oil and gas properties. SOURCE Oilex, Inc.
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