Contact Information: For More Information Contact: Thomas Rozycki CJP Communications for Platinum Energy Resources, Inc. Public & Investor Relations 212-279-3115 x208 tom@cjpcom.com
Platinum Energy Resources, Inc. Completes Acquisition of Oil & Gas Assets
| Source: Platinum Energy
NEW YORK, NY--(Marketwire - December 28, 2007) - Platinum Energy Resources, Inc. ("Platinum
Energy") (OTCBB : PGRIU ) (OTCBB : PGRI ) (OTCBB : PGRIW ) announced today that
it completed the acquisition of certain assets of Lothian Oil, Inc. for
$6.2 million in cash.
The Lothian assets acquired consist of oil and gas properties located in
New Mexico and include over 1 million barrels of oil equivalent (boe) of
proved reserves. Fifty-five percent of the reserves are proved developed.
The current production exceeds 140 boe per day, and one of the primary
fields is adjacent to the Company's Ballard Field in Eddy County. "These
assets are a good fit with the current asset base of Platinum. At an
acquisition cost of $6 per barrel of proved reserves, the acquisition
represents a very good value," added Tim Culp, Platinum Energy's Chairman.
The assets were acquired out of bankruptcy court. According to Todd Yocham,
Vice President, Engineering, "We believe that the reserves are solid, and
we are anxious to exploit the undeveloped acreage."
In addition to the Lothian acquisition, Platinum Energy also announced
today that it has recently acquired a 50% working interest in the La Rosa
field in Refugio County, Texas for $5 million in cash, and entered into a
joint development agreement with Mantle Resources, an operating company in
Houston, Texas. The La Rosa field includes over 4,000 acres and has both
drilling and recompletion opportunities. Mantle will provide Platinum with
substantial expertise in operations and seismic analysis.
"We are off to a very aggressive start, acquiring assets and initiating our
drilling program with a focus on shareholder value," said Barry Kostiner,
Platinum Energy's CEfO. "Through a combination of acquisitions and
accelerating development, we believe that we can achieve our goal of
significantly increasing net production by the end of 2008."
About Platinum Energy
Platinum Energy, based in Montvale, New Jersey, is an oil and gas
exploration and production corporation that completed its first
acquisition, Tandem Energy, on October 26, 2007. Platinum Energy is seeking
to build a portfolio of assets using multiple acquisitions subsequent to
its first. Platinum Energy's strategy calls for the use of hedge financing
to maximize profit and reduce risk resulting from volatile energy markets.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning
of the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. In some cases, forward-looking statements can be identified by
words such as "believe," "expect," "anticipate," "plan," "potential,"
"continue," "intend" or similar expressions. Forward-looking statements
also include the assumptions underlying or relating to any of the foregoing
statements. Such forward-looking statements are based upon current
expectations and beliefs and are subject to a number of factors and
uncertainties that could cause actual results to differ materially from
those described in the forward-looking statements. The forward-looking
statements contained in this press release may include statements about
future financial and operating results. These statements are not guarantees
of future performance, involve certain risks, uncertainties and assumptions
that are difficult to predict, and are based upon assumptions as to future
events that may not prove accurate. Therefore, actual outcomes and results
may differ materially from what is expressed herein. In any forward-looking
statement in which Platinum Energy expresses an expectation or belief as to
future results, such expectation or belief is expressed in good faith and
believed to have a reasonable basis, but there can be no assurance that the
statement or expectation or belief will result or be achieved or
accomplished. All forward-looking statements included in this press release
are based on information available to Platinum Energy on the date hereof.
The following factors, among others, could cause actual results to differ
from those set forth in the forward-looking statements: business conditions
in the U.S. and abroad; changing interpretations of generally accepted
accounting principles; outcomes of government reviews; inquiries and
investigations and related litigation; continued compliance with government
regulations; legislation or regulatory environments, requirements or
changes adversely affecting the businesses in which Platinum Energy is
engaged; fluctuations in oil and gas prices and in customer demand;
management of rapid growth; intensity of competition; general economic
conditions; as well as other relevant risks detailed in Platinum Energy's
filings with the Securities and Exchange Commission. Platinum Energy does
not assume any obligation to update the information contained in this press
release.