LEC Enters Agreement To Develop Diamond Springs Oil Prospect
Language Enterprises Corp. has entered into a binding agreement to purchase a 5% working interest, being a 3.75% net revenue interest, in G2 Petroleum, LLC's Diamond Springs Prospect covering approximately 3,300 acres of prospective oil and gas properties located in Fremont County, Wyoming. In addition, Language Enterprises will have the right to acquire a 100% working interest, being a 75% net revenue interest, in an exploratory well to be drilled on the Diamond Springs Prospect.
To acquire its 5% working interest in the Diamond Springs Prospect, Language Enterprises has agreed to issue to G2 Petroleum 250,000 shares of its common stock upon closing. In addition, Language Enterprises will earn a 100% working interest in an exploratory well to be drilled on the Diamond Springs Prospect and the surrounding spacing unit by paying for the costs of drilling and completing that well. Language Enterprises will provide G2 Petroleum with $50,000 to go towards the cost of drilling the well, plus an additional $300,000 within 45 days after closing. The payment of additional drilling costs will be subject to approval by Language Enterprises. Closing is expected to occur sometime within the next 60 days. The spud-date for the Language Enterprises - G2 Petroleum well is expected to be in the summer of 2008.
Upon completion of the Language Enterprises - G2 Petroleum well, and analysis of the results, Language Enterprises will have the right to increase its ownership interest in the rest of the Diamond Springs Prospect to a 50% working interest at a price of $100,000 per each 1% working interest, payable in cash or stock.
The entry into this agreement with G2 Petroleum signals a change in business direction for Language Enterprises from translation brokerage services to the acquisition and development of oil and gas projects. In accordance with this change in business, Language Enterprises' management intends to change the name of the company to one that more accurately reflects its current business focus.
Commenting on the new business direction, Language Enterprises CEO Dr. Paul Kirkitelos said, "We are extremely enthusiastic about the opportunities presented by the oil and gas sector. The direction of global economic and demographic growth has created unprecedented demand for these valuable commodities." Dr. Kirkitelos added further that, "The agreement with G2 Petroleum is especially promising, with geological reports indicating that the potential oil and gas resources are expected to be near the surface. The lower drilling costs resulting from shallow wells make the risk/reward ratio of this deal extremely attractive for us and our shareholders."