HOUSTON, Aug. 15, 2011 (GLOBE NEWSWIRE) -- EFL Overseas Inc. (OTCBB:EFLO) ("EFLO"), announced the execution of a Definitive Letter of Interest (the "Definitive LOI") with Nahanni Energy Inc. for the acquisition of an undivided 30.664% working interest in the Kotaneelee Gas Project. The Definitive LOI advances EFLO's purchase of the Kotaneelee gas production, exploration acreage and processing plant, by setting out a detailed acquisition strategy for approval by Nahanni's shareholders.
Under the Definitive LOI, EFLO may acquire Nahanni's interest in approximately 4.5 mmcfd of gas production, a gas plant and related facilities with 70 mmcfd capacity, and 31,731 acres of land on which there is potential for significant conventional and unconventional shale gas reserves, in exchange for $400,000 in cash, $4,100,000 paid in exchangeable shares of EFLO's common stock, and the absorption of Nahanni's environmental liabilities related to the assets.
The Definitive LOI is subject certain conditions including the execution of definitive purchase agreements and the approval of Nahanni's shareholders. EFLO and Nahanni plan to complete the Kotaneelee acquisition during September 2011.
About EFL Overseas and the Kotaneelee
Beginning in 2010, EFLO announced pursuit of an acquisition of certain working interests in the Kotaneelee gas facility and its related proven and producing gas field located in the Yukon Territory, Canada. EFLO is currently a party to negotiations with multiple interest holders in those assets.
In April 2011, the Company initiated oil and gas operations through its execution of a Farmout and Participation Agreement for the acquisition of a net working interest ranging from 21.25% to 42.5%, in a 2,629 acre oil and gas lease located in southwest Texas.
Forward-Looking Statements: This press release includes forward-looking statements as determined by the U.S. Securities and Exchange Commission (the "SEC"). All statements, other than statements of historical facts, included in this press release that address activities, events, or developments that the Company believes or anticipates will or may occur in the future are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which the Company has little or no control. The Company does not intend (and is not obligated) to update publicly any forward-looking statements. The contents of this press release should be considered in conjunction with the warnings and cautionary statements contained in the Company's recent filings with the SEC. There can be no assurance that EFLO we will be successful in completing the Kotaneelee acquisition(s).
ON BEHALF OF THE BOARD OF DIRECTORS
EFL Overseas Inc.