SAN FRANCISCO, CA--(Marketwire - May 1, 2012) - Worthington Energy, Inc. (
The first phase (the "Lease Assignment"), was completed April 20, 2012, involved the conveyance of the 6.25% Working Interest in the Alvey Leases (478.5 Acres, 33 well bores, Callahan County Texas) from D Bar to Worthington for payment of $100,000 in connection with the execution of the Lease Assignment.
The second phase (the "Development Agreement") was executed April 26, 2012 involves the conveyance of 87.5% of the Working Interest in the Alvey Leases, 95% of the Working Interest in the Boyett Leases (480 Acres, 14 well bores in Callahan County, Texas) and 95% Working Interest in the Burham Leases (240 Acres, 7 wells, Taylor County, Texas) the wells from D Bar and or assignees to Worthington in exchange for $3,500,000 in leases costs and $1,058,000 in initial rework funds. Said conveyance of wells is contingent upon securing a funding commitment, establishing mechanisms for funding work-over operations on certain wells and funding the acquisition of additional working interests in the leases. D Bar will retain a 15% carried interest in each well conveyed to Worthington. The closing of phase two is anticipated to occur within 45 days.
"This is the third acquisition agreement that the Company has entered into in the last six months," said Worthington Energy, Inc. President and CEO Tony Mason. "We are continuing to follow our plan of acquiring producing properties with large potential cash-flows and proven reserves, and then developing the fields by reworking existing wells and drilling new wells. I am excited about where we are headed as a company and look forward to keeping you updated on our progress as we move forward."
Worthington (f/k/a Paxton Energy, Inc.) engages in the acquisition, exploration, development and drilling of oil and natural gas properties. Worthington is an energy turnaround company whose strategy is to acquire cash flow producing properties with proved and probable reserves, develop the fields by reworking existing wells and drilling new wells. Worthington was founded in 2004 and is based in Stateline, Nevada.
Cautionary Note to U.S. Investors
Effective January 1, 2010, the United States Securities and Exchange Commission (SEC) now permits oil and gas companies, in their filings with the SEC, to disclose not only "proved" reserves (i.e., quantities of oil and gas that are estimated to be recoverable with a high degree of confidence), but also "probable" reserves (i.e., quantities of oil and gas that are as likely as not to be recovered) as well as "possible" reserves (i.e., additional quantities of oil and gas that might be recovered, but with a lower probability than probable reserves). As noted above, statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve estimates provided in this press release that are not specifically designated as being estimates of proved reserves may include estimated reserves not necessarily calculated in accordance with, or contemplated by, the SEC's latest reserve reporting guidelines. Investors are urged to consider closely the disclosure in Worthington's Annual Report on Form 10-K available from 220 Montgomery Street #1094, San Francisco, CA, 94104 (attn: Investor Relations). You can also obtain this report from the SEC by calling 1-800-SEC-0330 or from the SEC's website at www.sec.gov.
Statements about Worthington's future expectations and all other statements in this press release other than historical facts, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. Worthington intends that such forward-looking statements be subject to the safe harbors created thereby. The above information contains information relating to Worthington that is based on the beliefs of Worthington and/or its management as well as assumptions made by and information currently available to Worthington or its management. Worthington does not undertake any responsibility to update the forward-looking statements contained in this release.
Surety Financial Group, LLC