Daleco signed binding Letter of Intent.WAYNE, Pa.--(BUSINESS WIRE)--Dec. 2, 1996--Daleco Resources Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :DLOV) announced Monday that it has signed a binding Letter of Intent with an undisclosed seller to acquire all of its leasehold An estate, interest, in real property held under a rental agreement by which the owner gives another the right to occupy or use land for a period of time. leasehold n. interests and operating rights in the Upper Gulf area of Texas. Gary Novinskie, president of Daleco, stated that the properties being acquired consist of 30 productive tracts in Brazos, Burleson, Fayette, Robertson, and Washington counties Washington County is the name of 30 counties and one parish in the United States of America, all named for George Washington. It is the most common county name in the United States. . Based on a third party engineering reserve analysis, the properties have net proven reserves of approximately 3 million BOE BOE Based on Experience BOE Board of Education BOE BoletÃn Oficial del Estado (Spanish) BOE Bank of England BOE Board of Equalization BOE Board of Elections BOE Barrel of Oil Equivalent BOE Bind on Equip (barrels of oil equivalent) and are projected to generate $1.5 million of annual operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. net to Daleco's interest from the existing wells. Novinskie noted that while the acquisition more than doubles Daleco's current Austin Chalk reserves, the properties also contain substantial potential reserves in the Buda, Georgetown, and Edwards formations which are known to be productive in the area. Dov Amir, chairman and chief executive officer, added that the acquisition of these properties is significant in that it is the next step in the company's planned expansion of its oil and gas holdings. He pointed out that the close proximity to Daleco's existing operations will permit the company to take advantage of economics of scale and increased operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: . Amir confirmed that the company is continuing to evaluate additional acquisitions of proved oil and gas reserves in line with its previously announced policy of aggressive growth and expansion. Daleco is a natural resource company with holdings in oil and gas, timber, and precious minerals. CONTACT: Daleco Resources Corp. Gary J. Novinskie, 610/254-4199 or Dov Amir, 310/282-9999 |
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