News / Business
GEO Finance Corporation Secures Funding and Completes the Acquisition of the Medlin Oil Lease
CEO John Arnold states "This acquisition is a positive milestone for Geo Finance not only for the company's growth but follows our business model to ensure shareholders that we are aggressively moving forward with more acquisitions of on-shore oil fields in the United States."
In this acquisition Geo Finance Corp acquires 34% working interest in the Medlin Field, an estimated 500 acre stacked gas and oil sands in Young County, Texas owned by McDermett Operating Co. and Sundial Resources Inc. (private Texas corporations of Graham, Texas). Geo Finance Corp anticipates production rates after of re-entry and reworking of the subject wells of approximately 20 barrels of oil (bpd) per day on an average of 25 days per month. Cash flow projections have been based on a price of $60 per barrel. Net monthly income from the Company's 34% interest (gross income less royalty, operating costs and state taxes where applicable) is estimated at $7,875 or $94,500 for the first year.
The funds to complete this acquisition were secured from a group of current shareholders with the terms as follows: 6 month term with an interest rate of 10% per annum paid in arrears with a right of prepayment without penalty. If the loans are not repaid in full within the term of the loan, the lender shall have the option of converting the loan into common shares of Geo Finance at a 50% discount to the average of the market price for the preceding 10 trading days.
This acquisition will enable the Company to move forward to acquire interests in additional leases on conventional, on-shore oil and gas production in the United States.
About Geo Finance Corporation: Geo Finance Corporation is a Florida entity established to develop and invest in energy related projects including waste to energy, geothermal collection fields, natural gas and petroleum production. The administrative office is based in Toronto, ON, Canada.
McDermett Operating Co. and Sundial Resources Inc. are private Texas corporations in Graham, Texas.
SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS
Statements in this document regarding the Transaction, the expected timetable for completing the Transaction, benefits and synergies of the Transaction, future opportunities for the company, expectations regarding the value and benefits of the Transaction and any other statements about Geo Finance Corporation's managements' future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable securities laws. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," estimates and similar expressions) should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including, but not limited to: the ability of the parties to consummate the Transaction and satisfy the conditions thereunder; the ability to obtain, the impact of any actions taken by any other party to complicate, delay or prevent the transaction and the ability to produce commercially viable quantities of gas on oil from the Medlin Field. Except as required by applicable law, Geo Finance Corporation disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this document.
Contact:
Contacts:
Geo Finance Corporation
John M. Arnold
C.E.O.
1 416 669 2416
info@geofinancecorp.com
www.geofinancecorp.com
GEFI Investor Relations provided by:
Position Media Group
4400 Northcorp Pkwy - Palm Beach Gardens, Florida 33410
1 561-847-7222
1 888-420-3280 (FAX)
ir@positionmediagroup.com
www.positionmediagroup.com
