Cotton Valley Resources Corp. to acquire Aspen Energy Corp.DALLAS--(BUSINESS WIRE)--June 25, 1997--Cotton Valley Resources Corp. (CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. :CVZC)(OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:CTVYF)("Cotton Valley") announced today the agreement of Aspen aspen, in botany aspen: see willow. Aspen, city, United States Aspen (ăs`pən), city (1990 pop. 5,049), alt. 7,850 ft (2,390 m), seat of Pitkin co., S central Colo. Energy Corp. ("Aspen") and its shareholders to exchange all of the issued and outstanding stock of Aspen for a combination of Cotton Valley's stock, warrants and cash with a total estimated value of $4,500,000. Aspen is a five-year-old private oil and gas exploration and production company located in Dallas whose principal property is the 2,100 acre Aspen Means (Queen) Unit waterflood development project in the Permian Basin The Permian Basin is a sedimentary basin largely contained in the western part of the U.S. state of Texas. It reaches from just south of Lubbock, Texas, to just south of Midland & Odessa, extending westward into the southeastern part of the adjacent state of New Mexico. (Andrews County) in West Texas with 16 producing wells and 52 infield Infield is a widely used term in sports terminology, its meaning depends on in what sport it is used. In baseball In baseball the baseball diamond plus a rounded region beyond it (see diagram), usually clear of grass, in contrast to the more distant, usually grass-covered proved undeveloped locations. Previously developed and waterflooded on 80-acre spacing by Exxon, the Means Unit is currently being redeveloped on 20-acre spacing in a manner similar to several successfully downspaced Queen waterflood projects in the immediate area. Based on reports by Ryder Scott Company, and other independent petroleum engineers, Cotton Valley estimates that the net proved oil reserves Oil reserves refer to portions of oil in place that are claimed to be recoverable under economic constraints. Oil in the ground is not a "reserve" unless it is claimed to be economically recoverable, since as the oil is extracted, the cost of recovery increases incrementally from the Means Unit will be 1.56 to 2.80 million barrels of oil with a 10% present value between $7.6 million and $16.4 million using constant prices. There are additional probable and possible reserves that have yet to be quantified. The acquisition also includes interests in 21 other producing wells in East Texas, Oklahoma and Utah. According to Jim According to Jim is an American situation comedy television series originally broadcast by ABC. The show premiered with little publicity in October 2001, following the surprise hit comedy My Wife and Kids. Hogue, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of Cotton Valley, the "Aspen acquisition will add significant revenues and cash flows to Cotton Valley as the West Texas waterflood is developed and reaches peak production over the next two years. The company is reviewing an exhaustive list of opportunities at this time. This was one of the best acquisitions relative to our entry costs that we have seen. Cotton Valley plans to continue to grow aggressively through quality acquisitions of this type." Cotton Valley is a fast growing Texas based independent oil and gas company. The company controls significant proven reserves throughout the U.S. and is growing rapidly through acquisitions. CONTACT: Cotton Valley Resources Corp. Patty Dickerson, 214/363-1968 patty@cottonvalley.com or Liviakis Financial Communications Inc. John Liviakis, 916/448-6084 |
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