HANA, Hawaii, May 25, 2005 (PRIMEZONE) -- Maui General Store, Inc. (OTCBB:MAUG) announces that it has signed a letter of intent with Omni Oil and Gas, Inc. of Dallas, Texas. The letter states that Maui General Store and Omni will negotiate the terms of an agreement under which Maui General Store would acquire 100% of the working interest in a 20-well natural gas drilling project within the renowned Barnett Shale area in the Fort Worth Basin in Texas. The letter also states that Maui General Store will acquire a significant interest in two other energy projects, the 124-well Tuscaloosa Red River Bull Bayou sand unit in Lafayette, Louisiana, and the 400-acre China South Oil field located near Beaumont, Texas. Both projects are considered proven from the geologist's reports, with Red River Bull having already recovered 25 million barrels of oil prior to being shut in. This agreement provides Maui General Store with a major and diversified stake in the increasingly lucrative energy market, securing both locations and operators for drilling in the largest natural gas repository in the region, as well as working wells and drilling zones in well-known crude oil production areas. Completion of the agreement will depend on satisfactory negotiation of a purchase agreement and on Maui General Store's success in obtaining the financing required to purchase the properties.
Featured in a front-page article on April 29, 2005 in the Wall Street Journal, Texas' Barnett Shale formation contains, according to government scientists, nearly 27 trillion cubic feet of natural gas. This volume roughly correlates to enough energy to serve all U.S. gas-heated homes for over five years. Once thought to be permanently trapped within the rocky confines beneath Fort Worth, Texas, new advances in exploration technology have opened the Barnett Shale area to successful drilling. An April 2004 Morgan Stanley Equity Research report also details growing confidence in the tremendous natural gas capacity of the region, noting that horizontal drilling techniques continue to yield greater results in core areas such as Tarrant and Wise counties, where the bulk of Maui General Store's projects are located. Richard Miller, CEO of Maui General Store, expresses enthusiasm about all three energy projects: "The Barnett Shale area represents a new and viable source for American energy exploration, and by augmenting this opportunity with our investment in ongoing oil wells that will produce hundreds of barrels per day, we feel this acquisition would bring great value to our shareholders in an increasingly energy-conscious environment." As energy costs in the U.S. continue to rise, Miller feels that any potential to reduce foreign oil dependence makes sense for consumers and investors alike.
For more information on the Barnett Shale Area go to www.thebarnettshale.com.
The Maui General Store company logo can be found at: http://www.primezone.com/newsroom/prs/?pkgid=1128
The statements made in this press release, which are not historical facts, contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement.