SALT LAKE CITY, July 10, 2014 /PRNewswire/ -- Richfield Oil
& Gas Company (OTCQX: ROIL) ("Richfield") announced today that since
entering into the Agreement and Plan of Merger ("Merger") with
Stratex Oil & Gas Inc. (OTCBB: STTX) ("Stratex") announced on
May 7, 2014, which must be approved
by Richfield shareholders,
Richfield has received
$1.7 million in proceeds from the
$3 million Loan Agreement with
Stratex which has been advanced to fast forward the pre-merger
development of Richfield's
high quality and scalable Kansas properties, under a mutually agreeable
work program.
Since May 7, 2014 Richfield's
production in the Kansas field has
increased from 58 bopd gross (42 bopd net) to 152 bopd gross (133
bopd net) this 263% increase in production is attributable to
completed reworks on 7 wells which includes the replacing of
tubing, pumps and acid treatments. Reworks have begun on 3
additional wells which is expected to bring our production to
approximately 207 bopd gross (183 bopd net). This work will be
completed over the next two weeks, assuming we have good weather
conditions in Kansas. In addition, Richfield will drill two new wells in
Kansas within currently producing
fields. The two new wells will be drilled over the next 4
weeks. During the past few weeks the rework schedule has been
hampered by excess rain in Kansas
which delayed the completion of the 3 well reworks.
Richfield's Kansas properties are located within the
prolific Central Kansas Uplift ("CKU"), an area noted for long life
oilfields, excellent historical well control, relatively shallow
target payzones and superior wellbore economics. The development of
Richfield's Kansas properties will continue while the
regulatory approvals and shareholder approvals are obtained for the
Merger. In addition to the above 10 wells, Richfield has an inventory of 85 low risk, low
cost and high rate of return drilling, behind pipe, salt water
disposal, offset and/or rework/recompletions in the Arbuckle
formation (57 new drilling, 28 recompletions). The Arbuckle, a vast
water drive reservoir system, has produced more than 2.4 billion
barrels of oil since the late 1920s. As leasehold ownership in this
area has long been fragmented, excellent potential exists for
bolt-on acquisitions and drilling opportunities.
Richfield's asset base also
includes world class upside represented by Richfield's ownership of extensive Central
Utah Overthrust acreage (totaling 33,270 gross, 12,530 net acres).
Management believes there is the potential for the discovery of
very significant reserves, associated with unbooked resource
potential in the Navajo Sandstone, Mancos Shale, and deeper
Mississipian formations (170 prospective drilling locations).
Richfield owns an 89.5% working
interest ("WI") in its HUOP Freedom Trend Prospect and a 56.6% WI
in the Liberty Prospect. The HUOP Freedom Trend Prospect is on
trend with two significant discoveries made by Occidental Petroleum
Corp. and Wolverine Gas & Oil, announced in 2003 and 2008.
In addition, Richfield owns
a 3% WI in a 20,000 acre Area of Mutual Interest ("AMI") through
its Independence Project, a high thermal maturity and organically
rich Mancos Shale play (31 drilling locations), which Management
believes could shortly become a highly sought after shale play in
the continental United States.
About Richfield Oil & Gas Company
Richfield is an independent
exploration and production company headquartered in Salt Lake City, Utah with substantially all of
its current producing assets located in Kansas, with potential high impact leases in
Utah, and Wyoming. Founded in April 2011, Richfield is dedicated to exploiting its asset
base and to growing organically through the exploitation and
development of its existing field inventory by the use of drilling,
workover, recompletion and other lower-risk development projects,
in order to increase proved reserves and production. Please
visit www.richfieldoilandgas.com for additional
information.
Cautionary Statement Regarding Forward-Looking
Statements
Certain statements in this communication regarding the proposed
transaction between Stratex and Richfield, including any statements regarding
the expected timetable for completing the transaction, benefits and
synergies of the transaction, future opportunities for the combined
company and products, and any other statements regarding Stratex'
and Richfield's future
expectations, beliefs, plans, objectives, financial conditions,
assumptions or future events or performance that are not historical
facts are "forward-looking" statements made within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as
amended. These statements are often, but not always,
made through the use of words or phrases such as "may", "believe,"
"anticipate," "could", "should," "intend," "plan," "will,"
"expect(s)," "estimate(s)," "project(s)," "forecast(s)",
"positioned," "strategy," "outlook" and similar expressions. All
such forward-looking statements involve estimates and assumptions
that are subject to risks, uncertainties and other factors that
could cause actual results to differ materially from the results
expressed in the statements. Among the key factors that could cause
actual results to differ materially from those projected in the
forward-looking statements are the following: the timing to
consummate the proposed transaction; the risk that a condition to
closing of the proposed transaction may not be satisfied; the risk
that a regulatory approval that may be required for the proposed
transaction is not obtained or is obtained subject to conditions
that are not anticipated; Stratex' ability to achieve the synergies
and value creation contemplated by the proposed transaction;
Stratex' ability to promptly, efficiently and effectively integrate
Richfield's operations into those
of Stratex; and the diversion of management time on
transaction-related issues. Additional information
concerning these and other factors can be found in Stratex' and
Richfield's respective filings
with the SEC, including their most recent Annual Reports on Form
10-K, Quarterly Reports on Form 10-Q and Current Reports on Form
8-K. Stratex and Richfield assume no obligation to update any
forward-looking statements. Readers are cautioned not to
place undue reliance on these forward-looking statements that speak
only as of the date hereof.
Contact: Michael Cederstrom,
801-519-8500
SOURCE Richfield Oil & Gas Company
