OMDA Oil and Gas, Inc. Enters Discussions to Acquire an Increased Stake in Concord Dome and the Surrounding Acreage OMDA OIL & GAS INC NEW (OTC) (USOTC:OOAG) Intraday Stock Chart Today : Wednesday 30 June 2010
OMDA Oil and Gas, Inc. (PINKSHEETS: OOAG) announced today that it has entered into discussions to increase its stake in the Concord Dome prospect. OMDA Oil and Gas currently owns a 37.5% share of its leased wells on Concord Dome. The potential increase would raise OMDA's percentage of ownership in all of its wells across the board. The transaction will be paid for fully in cash, if completed.
OMDA is also actively pursuing expanding its business within the surrounding acreage to Concord Dome. Concord Dome is an area of about 160 acres in Anderson County, Texas with 18 leases housing a number of existing and currently producing oil wells. Third party reports estimate the long term potential of the existing wells on Concord Dome to yield over 1 million barrels of oil. The surrounding area covering hundreds of acres is projected to have as abundant an oil supply as the Concord Dome itself. OMDA is currently weighing its options with respect to acquiring leases or acreage on the surrounding area. Any acquisition by OMDA will be paid for fully in cash.
"The opportunity to increase our ownership stake in these wells and the surrounding acreage should prove to be very beneficial for our company and our shareholders," stated OMDA President and Chairman Adam Barnett. "We expect Concord Dome to be a highly profitable project for many years to come. The potential revenue increase with a larger ownership stake would shorten the timeframe to fully repay investors and put OMDA on a fast track to profitability. Discussions are ongoing for both of these proposed expansions." Mr. Barnett added, "Because this potential acquisition will be paid in full by OMDA, any and all revenues generated by these new wells will go directly to the company. With no investors to repay, our shareholders will enjoy an immediate benefit as the revenues come in."
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. and OMDA Oil & Gas, Inc. (Texas), are in the business of oil and gas production and lease acquisition. 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, statements relating to the future anticipated direction of the Oil and Gas Industry, plans for expansion, various business development activities, planned capital expenditures, future funding resources, anticipated sales growth and potential contracts. 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.