Tiger Acquires 30% Working Interest in Producing Oil Property
10 February 2009 - 1:00AM
PR Newswire (US)
HONG KONG, Feb. 9 /PRNewswire-FirstCall/ -- Tiger Renewable Energy
Limited (OTC:TGRW.OB) (BULLETIN BOARD: TGRW.OB) announces that it
has acquired a 30% working interest in the GP Project located in
Northern Texas for a total purchase price of $1,000,000. The
project consists of 7 leases covering approximately 323 net acres
and has over 50 existing well bores. The acquisition was made from
Wellington Capital, a portfolio management company with substantial
investments in the Oil and Gas sector. The GP project is deploying
Enhanced Secondary Recovery (ESR) methods and know-how to rework
and return to production some 40 existing wells. The GP project is
in three phases. The first phase, which is under way and already
yielding production results, consists of selecting wells for rework
and performing cleaning, fracing and acid treatments, essentially
turning the fields back on. The second phase will consist of
perforating other existing Zones to get additional production from
existing reserves behind pipes, as well as the use of a number
other ESR methods to increase production. Phase three envisions
additional drilling on the property to either go deeper to other
zones or establish additional offset wells. This acquisition
represents a new departure in an effort to re-create value for
Tiger's shareholders and position the company for future growth.
With the market for ethanol at an all-time low and investor
sentiment toward that industry being negative at present, the board
and management concluded that the Hami project was not going to
result in a viable business even if more capital was available, and
thus decided to identify new opportunities for Tiger. Although this
acquisition takes the Company in a different direction, still in
the energy field, it is undertaken with the goal of creating value
for its stakeholders. The oil market being at a many year low has
created opportunities in that industry. The present acquisition of
a working interest in the GP Project was made on favorable terms
and should bring good value in the future, benefiting our
stakeholders and management is looking at other opportunities in
the sector. Forward-Looking Statements This press release contains
"forward-looking statements" as defined in the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
based on currently available competitive, financial and economic
data and management's views and assumptions regarding future
events. Such forward-looking statements are inherently uncertain.
The Company cannot provide assurances that the matters described in
this press release will be successfully completed or that the
Company will realize the anticipated benefits of any transaction.
Actual results may differ materially from those projected as a
result of certain risks and uncertainties, including but not
limited to: global economic and market conditions; the war on
terrorism and the potential for war or other hostilities in other
parts of the world; the availability of financing and lines of
credit; successful integration of acquired or merged businesses;
changes in interest rates; management's ability to forecast
revenues and control expenses, especially on a quarterly basis;
unexpected decline in revenues without a corresponding and timely
slowdown in expense growth; the Company's ability to retain key
management and employees; intense competition and the Company's
ability to meet demand at competitive prices; relationships with
significant suppliers and customers; as well as other risks and
uncertainties, including but not limited to those detailed from
time to time in the Company's SEC filings. The Company undertakes
no obligation to update information contained in this release. For
further information regarding risks and uncertainties associated
with the Company's business, please refer to the risks and
uncertainties detailed from time to time in the Company's SEC
filings. To learn more about our company please visit our web site
at http://www.tigerethanol.com/ DATASOURCE: Tiger Renewable Energy
Limited CONTACT: Tiger Renewable Energy Ltd., +1-514-402-2538,
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