Well Renewal Issues Open Letter to Shareholders Friday May 18, 9:45 am ET
TULSA, Okla., May 18, 2007 (PRIME NEWSWIRE) -- Well Renewal, Inc. (Other OTC:WRNW.PK - News), a rapidly growing diversified oil and gas regional operator specializing in oil and gas exploration, enhanced recovery methods of abandoned and low-production oil properties, and oil field services, releases an open letter to its' shareholders from its CEO, David Rees:
Dear Well Renewal Shareholder:
As you know, I became Chief Executive Officer of Well Renewal in mid-March this year. I wanted to take this opportunity to introduce myself and to update you on the progress and direction of Well Renewal.
I have spent the majority of my career involved in mergers and acquisitions and structuring financial transactions. After graduating from law school at NYU I worked at a large New York City law firm, Skadden Arps. I have since worked with several companies, assisting them with raising capital and growing their businesses both organically and through acquisitions.
The opportunity for us to become profitable in the oil and gas business at Well Renewal is exceptionally promising. Our primary focus is acquiring quality businesses and entering into joint ventures with companies that have substantial history in the industry. We are reviewing a number of companies in the industry, both on the production and services side of the business, that fit our criteria. Our focus as a management team is to locate these businesses and to bring them into the Well Renewal family.
I am looking forward to putting my background in mergers and acquisitions to work. The senior management team at Well Renewal also includes Harry Martin our Chief Financial Officer. Harry's financial background includes serving as the Controller for multi-million dollar ($500,000,000 and $200,000,000) companies, both publicly traded companies. As Chief Financial Officer of a multi- million dollar public company, he was instrumental in acquiring and merging six companies into the entity. In addition, Andy Goodell is our Executive Vice President of Operations. Andy has over thirty years of experience in technical, administrative and management positions within the oil and gas industry. This experience provides a solid base for his role to assess the operations of our acquisition targets, as well as the ability to integrate them into Well Renewal.
In the past six weeks we have entered into two binding letters of intent. The first with Team Services of Michigan. Team has a incredibly experienced management team, headed by Don and Tim Tinker. Team should generate approximately $14 million in revenue in 2007, resulting in approximately $4 million in EBITDA. We are very excited about integrating Team, as well as utilizing Don and Tim's vast knowledge and experience at Well Renewal.
The second letter of intent executed is with Cementer's Well Service in Colorado. Like Team, Cementer's is run by an exceptionally experienced and skilled senior management team, headed by Rose and Jack Stoller. Rose and Jack have been running the business for 30 years. Again, we are excited to work closely with them and integrating them into the Well Renewal fold.
We are currently conducting an audit of Team. Audits for Cementer's have already been completed. We have been informed by our investment bankers that we should be in a position to close each of Team and Cementer's within the next six to eight weeks.
As illustrated by Team and Cementer's, our criteria for acquisitions involves finding a proven business, with a sustainable model, headed by an experienced, highly competent and ethical management teams. We have developed relationships with investment banking institutions that will allow us access to capital on attractive terms to complete the acquisitions. Our goal is to acquire as many quality businesses that meet our criteria as possible over the next several years. We invite each of you to present us with opportunities you may be aware of at any time. We are always on the lookout for quality companies.
Further, our board has determined WRNW will sell all of its owned lease assets (oil and gas) and concentrate on continued M&A activity for continued growth. Therefore, I ceased all drilling activity and am preparing appraisals for the assets to be sold. I am meeting next week with an oil services company in west TX and other prospects are under consideration. I am in initial discussions with perspective buyers for the lease assets.
As you know, we are currently trading on the pink sheets as a non-reporting company. The primary reason that we are not trading on another exchange is that we do not yet have audited financial statements. We are currently working on remedying this, and anticipate having audited financial statements before the end of 2007. At that time, we will make application to move to another exchange.
We have also recently completed a net equity capital raise of approximately $800,000 for the company. During the course of our equity capital raise we obviously needed to issue significant amounts of stock. The number of shares currently outstanding is approximately 562,000,000.
We have also initiated the process of raising additional equity capital of between $1 million and $5 million. We anticipate being in a position to raise this capital within the next 3 to 4 months.
All of us at Well Renewal are especially excited about the prospects for our industry. The opportunities that we are currently reviewing are substantial and, more importantly, very achievable. I look forward to your continued support as we take Well Renewal to the next level.
D. Rees CEO
About Well Renewal, Inc.
Well Renewal, Inc., headquartered in Tulsa, Oklahoma, is principally engaged in oil and gas exploration as well as enhancement and recovery of abandoned and low production oil properties, oil field services and petrochemical distribution.
Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as ``may,'' ``will,'' ``should,'' ``could,'' ``expects,'' ``plans,'' ``intends,'' ``anticipates,'' ``believes,'' ``estimates,'' ``predicts,'' ``forecasts,'' ``potential,'' or ``continue,'' or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The company has no obligation to update these forward-looking statements.
Contact: Well Renewal, Inc. D. Rees, CEO 918-585-5101 drees*wellrenewal.com
-------------------------------------------------------------------------------- Source: Well Renewal, Inc.
Posts: 2383 | Registered: Apr 2006
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sounds like they are going out of business and going to do something else like supposedly going to aquire comps like themselves(which sounds like a lot of bull)the bottom line is they have stopped drilling and are going to try something else,and i just bought in,cause they were doing fine for a long time ,of course again as usual the news came out after i bought in and is not on their website
Posts: 83 | From: ny | Registered: Dec 2006
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