GEO Finance Corporation Secures Funding and Completes the Acquisition of the Medlin Oil Lease
March 31 2011 - 6:27AM
Marketwired
Geo Finance Corporation (PINK SHEETS: GEFI) announces that the
Company has secured funds which will complete the acquisition of
its interest in the Medlin Oil Lease. This is a substantial move
for the company not only acquiring the first oil lease but also
executing strategies that will enhance the company's revenues.
CEO John Arnold states "This acquisition is a positive milestone
for Geo Finance not only for the company's growth but follows our
business model to ensure shareholders that we are aggressively
moving forward with more acquisitions of on-shore oil fields in the
United States."
In this acquisition Geo Finance Corp acquires 34% working
interest in the Medlin Field, an estimated 500 acre stacked gas and
oil sands in Young County, Texas owned by McDermett Operating Co.
and Sundial Resources Inc. (private Texas corporations of Graham,
Texas). Geo Finance Corp anticipates production rates after of
re-entry and reworking of the subject wells of approximately 20
barrels of oil (bpd) per day on an average of 25 days per month.
Cash flow projections have been based on a price of $60 per barrel.
Net monthly income from the Company's 34% interest (gross income
less royalty, operating costs and state taxes where applicable) is
estimated at $7,875 or $94,500 for the first year.
The funds to complete this acquisition were secured from a group
of current shareholders with the terms as follows: 6 month term
with an interest rate of 10% per annum paid in arrears with a right
of prepayment without penalty. If the loans are not repaid in full
within the term of the loan, the lender shall have the option of
converting the loan into common shares of Geo Finance at a 50%
discount to the average of the market price for the preceding 10
trading days.
This acquisition will enable the Company to move forward to
acquire interests in additional leases on conventional, on-shore
oil and gas production in the United States.
About Geo Finance Corporation: Geo Finance Corporation is a
Florida entity established to develop and invest in energy related
projects including waste to energy, geothermal collection fields,
natural gas and petroleum production. The administrative office is
based in Toronto, ON, Canada.
McDermett Operating Co. and Sundial Resources Inc. are private
Texas corporations in Graham, Texas.
SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS
Statements in this document regarding the Transaction, the
expected timetable for completing the Transaction, benefits and
synergies of the Transaction, future opportunities for the company,
expectations regarding the value and benefits of the Transaction
and any other statements about Geo Finance Corporation's
managements' future expectations, beliefs, goals, plans or
prospects constitute forward-looking statements within the meaning
of the United States Private Securities Litigation Reform Act of
1995 and other applicable securities laws. Any statements that are
not statements of historical fact (including statements containing
the words "believes," "plans," "anticipates," "expects," estimates
and similar expressions) should also be considered to be
forward-looking statements. There are a number of important factors
that could cause actual results or events to differ materially from
those indicated by such forward-looking statements, including, but
not limited to: the ability of the parties to consummate the
Transaction and satisfy the conditions thereunder; the ability to
obtain, the impact of any actions taken by any other party to
complicate, delay or prevent the transaction and the ability to
produce commercially viable quantities of gas on oil from the
Medlin Field. Except as required by applicable law, Geo Finance
Corporation disclaims any intention or obligation to update any
forward-looking statements as a result of developments occurring
after the date of this document.
Contacts: Geo Finance Corporation John M. Arnold C.E.O. 1 416
669 2416 info@geofinancecorp.com www.geofinancecorp.com GEFI
Investor Relations provided by: Position Media Group 4400 Northcorp
Pkwy - Palm Beach Gardens, Florida 33410 1 561-847-7222 1
888-420-3280 (FAX) ir@positionmediagroup.com
www.positionmediagroup.com
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