Quest Oil has signed a Letter of Intent (LOI) to acquire 100% of the assets of B&B Oil. Following an exchange of shares, the details of which will be announced on the date of the closing of the transaction, Quest Oil will acquire 100% of B&B Oil’s producing wells and leases, all of which lie within proven oil and gas plays in Texas.
B&B Oil has acquired existing oil and gas properties in Texas that consist of leases in Hawkeye Field and the Midkiff Field in Eastland County. These properties include wells that are currently productive, as well as additional leases that warrant further development. At present, B&B Oil's producing wells require relatively modest capital expenditures to generate cash flow from oil production.
Quest Oil also announced the resignation of Mr. Marvin Gibbons, Director and CEO, and the resignation of Mr. Leonard Manson, Director and CFO, effective immediately. Quest Oil also announced the appointment of a new slate of Directors and a new senior management team, Mr. Joseph F. Wallen to the position of CEO and to the Board of Directors; the appointment Mr. Frank Grabs, to the position of Vice President of Operations and to the Board of Directors; and the appointment of Robert J. Clark to the Board of Directors. Together, the new Board of Directors and Management Team bring to the Company a combined 60 years of experience in the oil and gas industry.
Joseph Wallen, Quest Oil's new CEO, remarked, "Quest Oil thanks Mr. Gibbons and Mr. Manson for their contribution to the Board and to the development of the Company." Regarding the LOI with B&B Oil, Mr. Wallen, added, "I believe the acquisition of B&B Oil's assets will play a key role in Quest Oil's strategy to generate new sources of revenue and, looking forward, will help to create shareholder wealth. Following the successful acquisition of B&B Oil’s assets, Quest Oil plans to implement a development strategy that will maximize oil production via the stimulation of existing wells and through the introduction of state of the art technologies in the exploration phase."
Most Popular Articles
From the Career Center
Jobs that may interest you