LAS VEGAS, July 14, 2005 (PRIMEZONE) -- Vision Energy Group (Pink Sheets:VNGP) proudly announces that it has today entered into an Agreement with Valley Production, Inc., a seasoned Oil & Gas Production Group from Bakersfield, CA. This arrangement was reached with the aim of enhancing the profitability of both companies by combining their unique complementary strengths in a cohesive, synergistic relationship.
Valley Production, Inc. lists among its distinguished principals and experienced technical staff such notables of the Industry as Jeff Smith and Ed LeLouis of Bakersfield, California. This skilled production-oriented team will provide guidance for Vision Energy Group, Inc. in the selection of suitable projects in the San Joaquin Valley. In addition, Valley Production will assist in the management and operation of the properties for a share in the cash benefits on a structured incentive plan.
The agreement allows Valley Production, Inc to gain equity in Vision Energy Group, Inc. contingent upon successfully selecting and recommending quality production properties that have a high net yield for Vision Energy Group, Inc. This "Earnout Agreement" is structured so that certain minimum net production levels must be attained before the allocated shares are issued to Valley Production, Inc. 1,000,000 total shares are involved in this progressive "Earnout Agreement." An initial payout of 100,000 shares will be issued at the closing of the 1st property. Valley Production, Inc. has an extensive list of producing properties from which to choose a portfolio of 12 to 15 long term assets, including a number of so-called "whales."
Vision Energy Group, Inc. will reap the benefits from this agreement in several ways. First, due to the payment structure, the risk exposure of the company is limited, and company stock will be issued only upon the satisfaction of minimum performance levels. Second, Vision Energy will either own these projects directly or employ their proprietary technology to liquefy or purify stranded and/or flared gas from such properties that can be acquired at costs below the normal market price. Vision Energy Group, Inc. is aware that significant reserves of low BTU gas exist in the San Joaquin Valley. These reserves that are currently untapped can be processed into high quality gas by the company's unique processes and readily sold into the pipeline grid, thus resulting in the production of a highly profitable, clean burning fuel in the midst of a highly competitive energy market.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release that are not historical, are forward-looking statements that are subject to risks and uncertainties that could cause results to differ materially from those expressed in the forward-looking statements, including but not limited to, certain delays and risks detailed from time to time in the company's filings with the Securities and Exchange Commission.
Sincerely, Russell Smith President and CEO, Vision Energy Group