OMDA Oil and Gas, Inc. Opts Out of Panola County Lease Letter of Intent Tuesday May 16, 9:30 am ET
The Company Also Offers an Update on Its Three Well Drilling Project With KY-Tenn Oil Inc. (KTO)
HOUSTON, TX--(MARKET WIRE)--May 16, 2006 -- OMDA Oil and Gas, Inc. (Other OTC:OMOG.PK - News) announces today that it has opted not to pursue the recent offer from Consumer Direct of America concerning the Panola County Lease. The company, upon further due-diligence, will not be finalizing the letter of intent signed on February 22nd 2006 to sell its interest in this 1,116-Acre Fredericksburg Prospect. Due to the ever-increasing price of oil and natural gas, OMDA believes the Panola County Lease could garner a better opportunity for the company and its shareholders in the future. Complete details concerning the Panola County Lease Project can be viewed at http://www.omogoil.com/projects.html.
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OMDA Oil and Gas, Inc. is also pleased to announce today that drilling is expected to commence within the next several weeks on its three well program with KY-Tenn Oil Inc. (KTO). The company entered into a proposed drilling program on February 15th with KTO for three 2100-ft. wells to test the Chattanooga shale formation. As reported then, this active field has other potential formations producing in the Monteagle and Fort Payne zones, and upon completing the drilling and the logging of these wells, the primary target will be the Chattanooga Shale.
Adam Barnett, Chairman, stated, "While we have declined finalization of the original Letter of Intent to sell our Panola County Lease to Consumer Direct of America, we are still actively pursuing the best option for this asset. We are currently in talks with the operator of Panola to maybe pursue other more lucrative offers, and I will keep our shareholders up-to-date as more information becomes available." Barnett went on to say, "Regarding the three well project with Ky-Tenn Oil, Inc. (KTO), I am pleased to be reporting the timeframe of its upcoming drilling. I will be anxiously awaiting the initial results from this project and look forward to sharing those results as they develop."
About OMDA Oil and Gas, Inc.
OMDA Oil and Gas, Inc. and its wholly owned subsidiaries, OMDA Oil & Gas Management, Inc., Texas OMDA Drilling & Operating, Inc. and OMDA Oil & Gas, Inc. (Texas) 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. Current acreage interests include a 15% working interest in 800 acres in Shelby County, TX and a carried back-in working interest of at least 7.5% up to 37.5% in a 12 well work over play in the Concorde Dome Field in Andersen County, TX.
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.
Contact: Contact: OMDA Oil and Gas, Inc. Investor Relations 800-621-0113 IR*omogoil.com http://www.omogoil.com
-------------------------------------------------------------------------------- Source: OMDA Oil and Gas Inc.
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thanks for the pr adam, i missed early morning. did we pop and then fall back. not sure why this company isnt getting more attention. this pr looks good to me. actively pursuing oil and gas...
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dangit.. i thought macd peaked negative yesterday.. looks like we have one more day of being stifled. hopefully macd will start the trail back to positive by tomorrow.
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I suspect people are selling for a loss. We touched .0065 earlier and I almost pulled the trigger on more shares. I'm still holding out for a lower price.
quote:Originally posted by gnulnx: This is manipulation at it's finest. Look at the size of the buy orders vs the sell orders and then tell me why were down?
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You can't blame people for being nervous. We are all nervous! But, if you don't take a risk, you won't get the reward. All of these pennies are calculated risks. I just can't see selling at a loss though. I wonder who is selling? Why would someone sell at a loss before news is out? I've watched this many times. People selling off low right before it goes through the roof and then complaining that they should have held longer. Duh. Doesn't make any sense!
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yep, pickin up vol.. looks like more people are picking up on the news. a lot of people here pprobably dont even know about that pr today. i thought the pr was great news really. strengthens the idea that settlement is coming and they'll use the money to develop panola. great news. lets get that oil adam..
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