OMDA Oil and Gas in Pact to Acquire Interest in Drilling Rig
OMDA Oil and Gas has entered into an agreement to acquire a 12.5 % interest in JKOD Holdings, (JKOD) a recently formed East Texas based LLC which currently owns and operates a rig rated to approximately 6,000 ft. Closing is subject to OMDA completing its due diligence and approval of the transfer by the majority of the other JKOD owners. Assuming success of the due diligence and approvals, completion of this transaction should be within the next three weeks.
Adam Barnett, Chairman stated, "We are very happy to have this opportunity to further diversify the new OMDA into this very active sector of the Oil & Gas Industry. With the historically high prices of Oil & Gas, rigs are in high demand with long backlogs. Rig operators are able to get premium prices for drilling as well as in some cases carried interests in the wells they are drilling. This particular rig is just completing a rebuild and upgrade and should have many years of drilling ahead." Barnett went on to say, "An additional advantage of OMDA's participation in a rig, is the sometime opportunity to have our production company 'ground floor' participate in wells that JKOD contracts to drill. Additionally, in the rare instance that the oil operator that contracts JKOD to drill its well has a cash shortfall in its obligation to JKOD, OMDA may have an opportunity to selectively step in."
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