Sovereign Oil signs LOI to acquire 9 producing wells in SE KS
Thursday, Nov 29, 2012
PLANO, Texas, Nov. 28, 2012 /PRNewswire/ -- Globalgroup Investment Holdings, Inc. (GIHI.PK) announced today its subsidiary Sovereign Oil, Inc. has executed an LOI agreement with Ad Astra Oil Corporation to acquire a 120 acre oil and gas lease in Miami County Kansas with 9 producing oil wells and 5 oil wells scheduled to be reworked.
Under the terms of the acquisition the Company will immediately upon completion of the Definitive purchase agreement assume the production of 9 oil wells and then rework the 5 additional secondary recovery wells.
The agreement is to be completed NLT December 15 th 2012, subject to final completion of normal due-diligence by GIHI. The company expects the cost of the additional 5 reworks to be approximately $10,000 per well.
Fred Rackers, President of Globalgroup Investment Holdings, Inc., stated, "This acquisition of 9 producing wells and the 5 secondary recovery opportunities in Kansas is a huge opportunity for GIHI and our subsidiary Sovereign Oil, Inc. The company expects to complete the acquisition by year end and begin the reworks early next year."
Upon completing the re-works, GIHI's petroleum division expects additional annual revenues of approx $250,000.
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 Global LOK™ that addressthe 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 Inc., 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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