PLANO, Texas, Jan. 3, 2013 /PRNewswire/ -- Globalgroup Investment Holdings, Inc. (PINKSHEETS: GIHI) announced today that its subsidiary Sovereign Oil Corp has completed the initial clean-up of the Baker lease tank battery in preparation for oil storage from the accessible production of the 9 existing wells and 3 additional wells scheduled to be re-worked in Q1. The electricity has been tested and oil is expected to begin flowing by mid-month.
Under the terms of the acquisition Sovereign has an additional 60 days in which to complete its due diligence and all oil recovered during this period shall be the property of Sovereign Oil & Gas. Sovereign expects to close the acquisition by March 1 st 2013.
Fred Rackers, President of Globalgroup Investment Holdings, Inc., stated, "The secondary recovery drilling of the three wells on the Baker lease in Kansas in addition to the 9 existing producing wells is just the beginning. Several additional wells are anticipated to be drilled later this year on the Baker lease." Mr. Rackers continued, "The production from the 9 existing wells and projected production from the 3 wells to be re-worked will result in improved cash flow for Globalgroup throughout 2013."
Upon completing the 3 re-works and restart of the 9 existing wells, GIHI's petroleum division expects annual revenues at current market prices to add an additional $200,000 annually.
About Globalgroup Investment Holdings, Inc.
Globalgroup provides a viable online shopping alternative for fiscally challenged consumers by offering quality name brand products at affordable prices, regardless of household income, through credit alternatives and time-payment options. Globalgroup also offers technology solutions such as GlobalLOK™ that address the computer payment collection challenges associated with rent to own, pay as you go and no-credit-check computer markets, and in other industries where remote PCs and laptops are deployed. Sovereign Oil, a wholly owned subsidiary, has its emphasis on oil and gas exploration, drilling, and well completion.
SOURCE Globalgroup Investment Holdings, Inc.
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