Tiger has acquired a 30% working interest in the GP Project located in Northern Texas for a total purchase price of $1,000,000. The project consists of 7 leases covering approximately 323 net acres and has over 50 existing well bores. The acquisition was made from Wellington Capital, a portfolio management company with substantial investments in the Oil and Gas sector.
The GP project is deploying Enhanced Secondary Recovery (ESR) methods and know-how to rework and return to production some 40 existing wells. The GP project is in three phases. The first phase, which is under way and already yielding production results, consists of selecting wells for rework and performing cleaning, fracing and acid treatments, essentially turning the fields back on. The second phase will consist of perforating other existing Zones to get additional production from existing reserves behind pipes, as well as the use of a number other ESR methods to increase production. Phase three envisions additional drilling on the property to either go deeper to other zones or establish additional offset wells.
This acquisition represents a new departure in an effort to re-create value for Tiger's shareholders and position the company for future growth. With the market for ethanol at an all-time low and investor sentiment toward that industry being negative at present, the board and management concluded that the Hami project was not going to result in a viable business even if more capital was available, and thus decided to identify new opportunities for Tiger.
Although this acquisition takes the Company in a different direction, still in the energy field, it is undertaken with the goal of creating value for its stakeholders. The oil market being at a many year low has created opportunities in that industry. The present acquisition of a working interest in the GP Project was made on favorable terms and should bring good value in the future, benefiting our stakeholders and management is looking at other opportunities in the sector.
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