Platinum Energy Completes Acquisition of Lothian Oil & Gas Assets
Platinum Energy Resources, Inc. has completed the acquisition of certain assets of Lothian Oil, Inc. for $6.2 million in cash.
The Lothian assets acquired consist of oil and gas properties located in New Mexico and include over 1 million barrels of oil equivalent (boe) of proved reserves. Fifty-five percent of the reserves are proved developed. The current production exceeds 140 boe per day, and one of the primary fields is adjacent to the Company's Ballard Field in Eddy County.
"These assets are a good fit with the current asset base of Platinum. At an acquisition cost of $6 per barrel of proved reserves, the acquisition represents a very good value," added Tim Culp, Platinum Energy's Chairman. The assets were acquired out of bankruptcy court. According to Todd Yocham, Vice President, Engineering, "We believe that the reserves are solid, and we are anxious to exploit the undeveloped acreage."
In addition to the Lothian acquisition, Platinum Energy also announced today that it has recently acquired a 50% working interest in the La Rosa field in Refugio County, Texas for $5 million in cash, and entered into a joint development agreement with Mantle Resources, an operating company in Houston, Texas. The La Rosa field includes over 4,000 acres and has both drilling and recompletion opportunities. Mantle will provide Platinum with substantial expertise in operations and seismic analysis.
"We are off to a very aggressive start, acquiring assets and initiating our drilling program with a focus on shareholder value," said Barry Kostiner, Platinum Energy's CEfO. "Through a combination of acquisitions and accelerating development, we believe that we can achieve our goal of significantly increasing net production by the end of 2008."