HOUSTON, TX--(MARKET WIRE)--Jun 9, 2006 -- US Energy Holdings, Inc. (OTC BB:USEH.OB - News) today announced that it has executed a letter of intent to acquire majority ownership of Midland, Texas based Taylor Exploration. ADVERTISEMENT
The letter of intent was signed on June 2, 2006 and puts US Energy in a strong position for the exploitation of the 200 natural gas well sites in Ozona, Texas the company recently acquired. US Energy Holdings owns the mineral rights to 9,500 acres of property in Crockett County, Texas. Of the 200 potential drilling sites on location, this property contains 15 proven and producing gas wells with a history of production since 1973. The bankable reserves on the property include USD $100 MM in reserves for 30 Canyon Wells locations and USD $39MM for 20 possible Strawn-Ellenburger locations. There could be as many as 30 Strawn-Ellenburger locations available on these leased properties.
Taylor Exploration is a 30-year veteran in the drilling industry with a proven record of exploitation success in the Crockett County area. "We feel that Taylor is the ideal candidate to help us secure the highest yield from our wells and start production within a very short period of time. They are the final piece to the puzzle and we are excited at the prospect of becoming a full-fledged energy company in today's world of exponential energy demand."
According to The International Council for Capital Formation in the United Kingdom, "...there will be an average increase of 41% of natural gas prices by 2010..."
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I like the looks of this. Low OS, good acquisitions, lots of money to invest in natural gas. Looks like they are doing the right things early on. Going to be a big gainer, IMO
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More news! This company is going to move big soon, IMO!
CEO, Claude Eldridge, is proud to announce, US Energy Holdings (OTC BB:USEH.OB - News) has just started negotiations to purchase 50% of a Natural Gas line in Crockett County, Texas. This is to be used to gather and transport natural gas to the main El Paso line. The purpose behind purchasing such a gas line is the fact that it should cut down overhead on gathering and transporting our gas and also show a positive revenue on future gas contracts for transporting for other energy-based companies in its area.
CEO, Claude Eldridge, states, "This is just another step of our aggressive plan for the rapid growth of US Energy Holdings, Inc."
This should combine with the purchase of Taylor Exploration to cut drilling expenses over 30%, gathering and transportation of natural gas by 50%, and also produce a rapid growth of capital within the company.
CEO, Claude Eldridge, explains, "Adding these two key acquisitions to our company we will not be held back on production or transportation as other companies are by waiting on the availability of drilling rigs and accessibility to transporting their product."
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