TULSA, Okla., April 18, 2007 (PRIME NEWSWIRE) -- Well Renewal, Inc. (Pink Sheets:WRNW), an emergent, rapidly growing diversified oil and gas regional operator specializing in oil and gas exploration, enhanced recovery methods of abandoned and low-production oil properties, oil field services, is pleased to announce that it has entered into a Letter of Intent to acquire an interest in Team Services LLC, a privately held Michigan well servicing company.
In operation since 2001, Team Services is a Kalkaska, Michigan-based service company providing comprehensive service work to the oil and gas industry. Team's main area of operations is in the Lower Peninsula of Michigan, although Team has performed work throughout the United States and Canada. Customers utilize Team for its ability to provide service work on existing wells and to perform well completion and well stimulation services. 70% of Team's current revenue is generated from service work on existing wells. Workover services include repairing various components of the well infrastructure, as well as the repair and replacement of their well components including pumps. Team's service work also includes trucking and disposal of liquid wastes associated with the service, completion and stimulation of wells. These wastes are disposed in three Salt Water Disposal wells which are owned by Team.
David Rees, WRNW CEO, stated, "We are very excited about working with Team. We see a tremendous fit on both a business and personal level with Team's management and are looking forward to working closely with Don and Tim Tinker for years to come. We also feel fortunate to have their talents available to WNRW at the corporate and strategic level."
Tim Tinker, Team Services, LLC, Managing Member commented, "We are pleased to have found partners who have the same commitment to servicing our customers that we have had over the years. We look forward to moving ahead with strategic initiatives to grow and expand our business to new levels."
Team's overall revenue has shown considerable growth since 2002, increasing from $4 million to $13.6 million (Unaudited) for the year ended December 31, 2006 with an adjusted EBITDA of $2.7 million. Well Renewal, Inc. will have 60 days to complete its due diligence and enter into a definitive Purchase Agreement.
About Well Renewal, Inc.
Well Renewal, Inc., headquartered in Tulsa, Oklahoma, is principally engaged in oil and gas exploration as well as enhancement and recovery of abandoned and low production oil properties, and oil field services.
Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "forecasts," "potential," or "continue," or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The company has no obligation to update these forward-looking statements.