(NewsDirect)
McapMediaWire --Principal Solar, Inc. (OTC: PSWW ) (“Principal” or “theCompany”), a strategic investor in organizations and technologiesthat support next-generation opportunities in traditional, renewable,and clean energy sectors as well as an
investor in and operator of undervaluedpetroleum-producing properties, today announced that it has executed aLetter of Intent (the “LOI”) to purchase a controlling workinginterest in the leases and oil & gas wells along with all of theassets associated with the Minerva-Rockdale Oil Field (located inMilam County, Texas) from Winchester Oil & Gas LLC(“Winchester”) of San Antonio, Texas.
“Principal’s controlling working interestacquisition represents a tremendous potential opportunity for our twocompanies,” said K. Bryce “Rick” Toussaint, CPA, MBA, Chairmanand CEO of PSWW. “We anticipate that Winchester's leases,equipment, and operational expertise combined with our know-how,relationships, and deep capital markets experience stand to transformthe storied Minerva-Rockdale Oil Field into a reliable source ofincreasingly profitable production and revenue.”
The leases included inthe LOI cover approximately 11,000 gross acres and 936 totalproduction and disposal wells. Purchased assets include 657 pumpjacks, 48 tank batteries, and 2.3 miles of pipeline.
Production andPotential Upside
Principal’s due diligence to date indicates that currentproduction stands at approximately 200 barrels per day, and of the 936total wells included in the LOI, 74 are currently producing from theshallow (1,000-1,500 foot deep) Navarro A & B formations. Theremaining balance are shut-in, non-producing wells that will requirethe development, funding, and implementation of a workover program toreturn to production status. The Company anticipates the drilling ofadditional wells to be relatively inexpensive and involve relativelylow risk.
“TheMinerva-Rockdale working interest acquisition offers truly remarkableupside potential to Principal, its partners, and its stakeholders,”said Anthony Lerner, Principal Solar’s Chief Operating Officer. “Arecent engineer’s report* indicates total proven reserves ofapproximately 4,102,680 barrels, valued at approximately $116,000,000today. With a substantial capex budget expected to be in place by theclosing date of the LOI, we plan to return 100-120 of thenon-producing shut-in wells to full production status, which weanticipate will double or triple production in the first 9-12months.”
TheMinerva-Rockdale Oil Field (“MROF”) was discovered in 1921 and wasonce one of the largest oilfields in Texas. Prior to 1950, MROFproduced 4,000,000 barrels of oil; total production from August 2014to today stands at 481,000 barrels. As indicated in the engineer’sreserve report*, the MROF remains a steady producer with significantreserves of oil yet to be recovered.
Principal plans to fund the acquisition via acombination of restricted stock and the assumption of some debt, andunder the terms of the LOI, the Company has the right of first refusalto purchase the energy assets accumulated from Winchester and/or itsjoint venture partners.
About Principal Solar
Principal Solar is a strategic investor in andacquirer of organizations and technologies that supportnext-generation opportunities in traditional, renewable, and cleanenergy sectors as well as an acquirer and operator of undervaluedpetroleum-producing properties.
For further information, please visit theCompany’s website at www.pswwenergy.com .
Sources
*MKM EngineeringReport; January 2022
Important Disclaimer Regarding Financial Terms
The specific financialterms contained in this press release are pending ongoing duediligence and are therefore subject to change without notice prior tothe closing date of the LOI.
Safe Harbor Statement under the PrivateSecurities Litigation Reform Act of 1995
The statementscontained in this news release which are not historical facts may be"forward-looking statements" that involve risks anduncertainties which could cause actual results to differ materiallyfrom those currently anticipated. For example, statements thatdescribe PSWW's hopes, plans, objectives, goals, intentions, orexpectations are forward-looking statements. The forward-lookingstatements made herein are only made as of the date of this newsrelease. Numerous factors, many of which are beyond PSWW’s control,will affect actual results. PSWW undertakes no obligation to publiclyupdate such forward-looking statements to reflect subsequent events orcircumstances. This news release should be read in conjunction withPSWW’s most recent financial reports and other filings posted withthe OTC Markets and/or the U. S. Securities and Exchange Commission byPSWW.
Principal Solar Contact
K. Bryce “Rick” Toussaint, CPA, MBA
Chairman and ChiefExecutive Officer
214.885.0032
Investor RelationsContact
Michael Briola
ContactDetails
Michael Briola
CompanyWebsite
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