CHEYENNE, Wyo., Sept. 8, 2005 (PRIMEZONE) -- Amelot Holdings, Inc. (Pink Sheets:AMHD) today announced that it has acquired a 10% working interest in the Kerr 1-H Well located in Shelby County, Texas. Amelot Holdings has also secured an extended option to purchase an additional 5% of working interest. The history on this property and all the geological studies validate potentially major commercial reserves of both oil and natural gas.
As part of this acquisition, Amelot Holdings has executed a definitive Exploration and Participation Agreement with CG Operating, Inc. (http://www.cgoperating.com) of Texas that holds the oil, gas and mineral leases for the Kerr 1-H properties. Amelot Holdings has paid in full its percentage of the acreage and prospect fees and has further committed over $100,000 in acquisition and development costs that will allow it and CG to undertake the commercial drilling.
Drilling is scheduled to begin by November of this year.
The well that will be drilled is located within the D. Gonzales Survey, A-237 and the Wm. Kerr Survey, A-402 in Shelby County, Texas. The well prognosis calls for +/- 3200 foot updip lateral to be drilled NNE from the penetration point, and will be drilled down dip from existing production. We could potentially see initial production rates in the 200-400 barrels of oil per day range along with associated natural gas. Based on current market prices for oil and natural gas, Amelot Holdings expects to potentially see a quick return on its investment.
"This acquisition gives us the right to undertake exploratory and drilling activities over oil and gas reserves with very promising profiles. CG Operating, Inc. has signed a drilling contract and will soon begin preparation of the site for the rig arrival. We look forward to getting into a production mode as soon as possible," commented Aziz Hirji, Chairman of Amelot Holdings. "We have made a very serious commitment to this strategic direction, and this acquisition is a demonstration of that commitment," he added.
About Amelot Holdings, Inc.
Amelot Holdings, Inc. is a diversified holding company focused on acquiring under-valued, high-growth firms and properties in the natural resource industry.
Statements in this press release that are not historical facts are forward-looking statements within the meaning of the Securities Act of 1933, as amended. Those statements include statements regarding the intent, belief or current expectations of the Company and its management. Such statements reflect management's current views, are based on certain assumptions and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to, our ability to obtain additional financing and access funds from our existing financing arrangements that will allow us to continue our current and future operations and whether demand for our products and services in domestic and international markets will continue to expand. The Company undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in the Company's expectations with regard to these forward-looking statements or the occurrence of unanticipated events.