YUKON, Okla., Dec. 15, 2005 (PRIMEZONE) -- Superior Oil & Gas Co.(OTCBB:SIOR), an oil and gas exploration and development company, has executed an agreement to acquire 28 natural gas wells in the Cherokee Basin, located near Southeast Kansas and Northeast Oklahoma, reported Dan Lloyd, CEO of Superior.
Nine of the 28 wells are currently producing 110,000 cubic feet of gas a day. An additional three of the 28 wells have been drilled, tested and completed and await only the final installation of pump jacks. The remaining sixteen of the 28 wells were producing wells earlier but were shut in due to low prices for natural gas and require today varying degrees of work-over to become productive again. The 28 wells will be acquired from William Foster, owner of Conquest Distribution Inc. and Foster Oil and Gas, for 300,000 shares of restricted SIOR common stock. The closing of the transaction should occur within one week with a January 1, 2006, effective date of the transfer of production.
"This is our first acquisition that will generate immediate revenues for our company," said Lloyd. "In addition, we believe many of the presently non-producing wells that are part of this transaction have considerable potential. We are focused on creating shareholder value and are quite confident this acquisition from Mr. Foster does just that."
This Press Release contains forward-looking statements based on our current expectations about our company and our industry. You can identify these forward-looking statements when you see us using the words such as "expect," "anticipate," "estimate," "believes," "plans" and other similar expressions. These forward-looking statements involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of our ability to complete required financings and other preconditions to the completion of the transactions described herein and Superior's ability to successfully acquire reserves and produce its resources among other issues. We undertake no obligation to publicly update any forward-looking statements for any reason, even if new information becomes available or other events occur in the future. We caution you not to place undue reliance on those statements.