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HOUSTON, TX -- (MARKET WIRE) -- 09/27/05 -- Coastal Holdings, Inc. (OTC: CSJJ), today announced the signing of a memorandum of understanding (MOU) with BDT Energy Producers, Inc. (BDT) to acquire a working interest in a development oil well. As per the MOU, Coastal Holdings shall invest $475,000 in cash to fund the developmental drilling of an oil well that is wholly owned by BDT. In consideration for its investment, Coastal Holdings shall receive a 75% working interest in the oil well. The development well is located in Southern Illinois adjacent to several producing and highly profitable oil wells that are over 40-years old. In addition, the well has multiple oil zones (from 5 to 7 pay zones); an initial production capacity of 100 to 300 barrels of oil per day (BOPD); and a life span of over 20 years. Further details will be disclosed upon signing of the formal joint operating agreement.
About BDT Energy Producers, Inc.
BDT Energy Producers, Inc. (BDT) is a subsidiary of Britton Oil Properties, a well-established 42-year old firm that owns 14 producing oil wells on 480 leased acres in Southern Illinois, approximately 125 miles east of St. Louis, MO., and 75 miles northwest of Evansville, Indiana. These wells have a total production capacity of 15 BOPD and an accumulated reserve of 330,000 barrels of oil. Since 1976, Britton Oil has sold $3.5 million worth of oil from these wells. BDT has been formed solely for the purpose of developmental drilling of new oil wells and has selected 5 prime drilling locations from Britton Oil Properties that it is now in the process of funding.
For more information please contact CEO Andrea Cortellazzi at (514) 288-9699 or visit the Company website at www.coastalholdings.com.
Forward-Looking Statements
Please be advised that statements made herein, other than historical data, constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, potential volatility in the company's stock price, increased competition, customer acceptance of new products and services offered by the company, and uncertainty of future revenue and profitability and fluctuations in its quarterly operating results. Please also be advised that the company's stock is not currently registered with the Securities and Exchange Commission.
Contact: Coastal Holdings, Inc. Andrea Cortellazzi CEO Ph# (514) 288-9699 E-mail: Email Contact URL: www.coastalholdings.com
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