HOUSTON, March 14, 2003 (PRIMEZONE) -- Trinity Energy Resources, Inc. (OTCBB:TRGC) today released a status report on developments in its efforts to reorganize under Chapter 11 of the U.S. Bankruptcy Code, for which it filed for protection on January 31, 2003.
With reference to the expansion of one of its Texas assets, the company filed a motion on February 28, 2003, for authority to enter into a term assignment agreement with Midland, Texas-based Seaboard Oil Co. If approved by the court, the agreement will provide for the near term development of a Ward County, Texas property believed to hold significant oil and gas reserves. Terms call for Seaboard to:
-- Become the operator of the joint venture
-- Pay Trinity's share of the expenses for drilling of the first well
in the venture
-- Provide a bonus payment to Trinity as part of the agreement and
-- Commit to the drilling of additional wells at 180-day intervals,
beginning approximately July 1, 2003.
Additionally, Trinity has also filed a motion seeking expedited approval to engage outside accountants to assist in the filing of its annual report on Form 10-K, and is awaiting notice of a hearing date on this matter. Pending court approval, the company said it might not be able to complete its annual audit and file its report on Form 10-K, as originally planned, on or before March 31, 2003.
Separately, Trinity did receive notice of a motion filed by a creditor, seeking the appointment of a trustee and dismissal of the Chapter 11 case, claiming fraud and misrepresentation related to an investment the investor made in the company in 1999. Trinity has no comment regarding the allegations made in the motion, beyond its belief that they are false and erroneous, and said that it is moving forward aggressively with its plan to emerge from Chapter 11 as soon as reasonably practical.
This release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the company's current views with respect to future events that involve risks and uncertainties including uncertainties related to successful negotiations with other parties, oil and gas exploration risks, commodity price volatility, production levels, closing of transactions, capital availability, operational and other risks, uncertainties and factors described from time to time in the company's publicly available SEC reports. In light of these risks and uncertainties, the forward-looking events described in this release might not occur.