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Good entry I think, check this and post. OMDA Oil and Gas, Inc. Acquires Interest in East Texas Drilling Rig Tuesday March 29, 10:20 am ET Also Comments on Panola Prospect and Bringing of Legal Action Against Former Management
HOUSTON--(BUSINESS WIRE)--March 29, 2005--OMDA Oil and Gas, Inc., an oil and gas production company (OTC.PK:OMOG), through its chairman, Adam Barnett, today announced that the company has completed the acquisition announced March 4th, of the 12.5% interest in JKOD Holdings, (JKOD) a recently formed East Texas based LLC which currently owns and operates an Oil & Gas Drilling Rig rated to approximately 6,000 ft, that was. OMOG has taken this opportunity to further diversify the new OMDA into this very active sector of the Oil & Gas Industry. Additionally, the Company has initiated a lawsuit in Texas State District Court, seeking "Declaratory Relief and Any and All other relief, in law and in equity," against Joseph A. Lanza, a former controlling person, and others, to remove a Slander of Title against certain company assets.
Adam Barnett, Chairman, stated, "We are very happy to have this opportunity to further diversify the new OMDA into this very active sector of the Oil & Gas Industry. With the historically high prices of Oil & Gas, rigs are in high demand with long backlogs. By participating in the ownership of a drilling rig company, not only can the company benefit in the profits from the utilization of the rig, but also could be exposed to ground floor opportunities in wells that JKOD may be contracted to drill."
Barnett commenting on the Company's Panola County, Texas, aggressive 1116 acre horizontal drilling prospect, "Along with the increasing price of oil, the value of this prospect also continues to increase. While we have been in the process of piecing together smaller investor interests to participate in the drilling of the first wells, our Operator S & H has recently informed us that he has been approached by another company who has an interest in taking over the whole play which could approach a $7 million plus total investment. While this is in the early stages of discussion and far from being a done deal, should we elect to go this route and strike such a deal, OMOG would retain a carried working interest for no up front investment and possible take an additional direct paid interest. Under any circumstances, this is definitely a sellers market. The oil and gas assets under this play is not going anywhere until it is drilled and is only becoming more valuable as we investigate the best opportunities for OMOG shareholders."
Commenting on the legal action mentioned above, "After several months of investigation, it is now becoming clear that former persons in authority, prior to my taking over the company in September 2003, may have misappropriated certain of the company's assets, and in fact continue to interfere with the restructuring which I began at that time. While I can't comment much more about the legal action at this time, obviously I would not have wasted time and money to investigate and file this action if I wasn't all but certain that the outcome would be very beneficial to all shareholders."
About OMDA Oil and Gas, Inc.
OMDA Oil and Gas, Inc. and its wholly owned subsidiaries, OMDA Oil & Gas Management, Inc. and Texas OMDA Drilling & Operating, Inc., are in the business of oil and gas production and lease acquisition. Currently the Company owns average participation interests approaching 47%, in 355 producing and non-producing oil and gas wells in Louisiana and Texas, as well as 100% gross interest in an undeveloped 1,116 acre, horizontal play in the Panola Field, Panola County, Texas.
This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic and business conditions, and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
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