Platina to Acquire 63-Mile Natural Gas Pipeline

Platina Energy has entered into a Letter of Intent to acquire a 63-mile pipeline in Texas, including six producing wells with cumulative total of 50 barrels of oil and 450 Mcf/d of natural gas.

The transaction is subject to agreement finalization and bank financing. Closing is expected in November. Platina will retain 50% of the acquisition and act as project manager.

Platina's President, Blair Merriam, stated, "This acquisition complements the shallow oil production recently acquired in East Texas. These wells are deeper Smackover formations that historically have produced several billion cubic feet of gas each. In addition to key drilling locations we'll own the only gas transmission pipeline for the area. This acquisition sets the stage for substantial growth in the four county areas between Oklahoma, Arkansas, Texas and Louisiana."