CNSV to Take Stakes in 13 Tennessee Gas Wells
Consolidation Services signed a Letter of Intent (LOI) to acquire an interest in thirteen gas wells located in Tennessee in an all stock transaction with an unaffiliated party. The Parties to the LOI are scheduled to sign a Definitive Purchase Agreement on or before March 15, 2010 and close the transaction on or before March 29, 2010; subject to, among other things, completion of due diligence and negotiating the Agreement. Additional details will be available once the legal, accounting and audit personnel advise on the transaction and the Agreement is signed. Definitive agreements are progressing on schedule for the fifteen Kentucky wells referenced in our March 3, 2010 press release.
Dr. Thomas, CEO said, "This acquisition, when completed, will increase the acres available for future drilling and increase the number of drilled wells owned by CNSV, as management focuses on the acquisition of oil and gas assets using CNSV common stock." The pending acquisition is consistent with CNSV's strategy to "grow shareholder value through the acquisition of oil and gas reserves and income producing properties." As previously announced, CNSV's coal assets and liabilities owned as of January 1, 2010, have been spun-off to CNSV's shareholders of record as of January 31, 2010.