OMDA Oil and Gas, Inc. Issues Its Report on Concord Dome Lease Revenues
May 27 2010 - 5:00AM
Marketwired
OMDA Oil and Gas, Inc. (PINKSHEETS: OOAG) wishes to offer the first
in a series of updates on the Concord Dome project. Due diligence
on this prospect is ongoing with data being collected from several
sources. OMDA is releasing the information as it is being received.
Further updates are expected to be reported to the company over the
next few weeks which will be released to the public.
The Concord Dome is a reference to an area of about 160 acres in
Anderson County, Texas with 18 leases housing a number of existing
and currently producing oil wells. Third party reports estimate the
long term potential of the existing wells on Concord Dome to yield
over 1 million barrels of oil. Surrounding the Concord Dome is a
vast area of land in the hundreds of acres which may be available
for acquisition by OMDA, and is projected to have as abundant an
oil supply as Concord Dome itself.
Accurate revenue projections data is still being compiled but
preliminary estimates at current oil prices could place OMDA's
revenue share over time in the tens of millions of dollars. The
company will provide a more detailed breakdown as those reports
come in.
Overall production to date has been below reasonable
expectations due to several factors. One of those factors was the
capping of some of the lesser producing wells in order to make
better use of available resources and place focus on the greater
producing ones. Perhaps the biggest issue which hampered production
was the former lawsuit. With the lawsuit having reached a
resolution, production on the existing wells can now be accelerated
and increased significantly.
Within the next several weeks OMDA plans on sending one or more
members of its management team onsite to meet with the company's
drilling partners, tour the facilities, walk every lease and get a
firsthand look at the progress to date, as well plans for future
drilling. During that visit, detailed pictures and video will be
taken of the property, wells, equipment, tank batteries, etc. and
placed on the company's website as promised for the benefit of all
current and prospective shareholders.
OMDA expects to release the next Concord Dome Update within 7 to
10 days. In that stage 2 report the company will provide more
detailed information and a more specific breakdown, including
engineering report findings which are forthcoming and will be
passed on to the public.
"Concord Dome is a very important and potentially very
profitable project for OMDA for many years to come," said Adam
Barnett, Chairman and President of OMDA Oil and Gas Inc. "Over the
next couple of weeks as we continue to gather and release more
details, our shareholders will get a more complete picture of the
prospect and a much better understanding of its long term
potential. Up until now this prospect has not been drilled to
anywhere near its potential. Our plans are to work closely with our
partners and get the maximum production we can from Concord Dome
for the next decade and beyond. We are also considering acquiring
some of the surrounding acreage in order to continue to bring more
wells online and ultimately harvest much more oil than just the
1,000,000 barrels that are recoverable right now."
In another development, OMDA Oil & Gas, Inc. and its Board
of Directors are exploring a Joint Venture opportunity that they
feel will be very lucrative and provide an additional revenue
stream for the company. This would be an all cash deal. The company
should have enough research and negotiations accomplished to share
an extensive update on this opportunity next week.
OMDA is also announcing that the reduction of the authorized
shares from 10 billion to 250 million has been completed. The new
authorized shares limit is now in force and has been submitted to
www.pinksheets.com to be posted to OMDA's company information
section.
Mr. Barnett commented, "Once the lawsuit was resolved the first
order of business was to completely change the company's share
structure. After lowering the authorized shares and canceling the
preferred shares we have not only given our shareholders a direct
say-so in all major decisions, but we have also put them into a
position to receive benefit much more as the company moves forward
with oil and gas production."
About OMDA Oil and Gas, Inc.
OMDA Oil and Gas, Inc. and its wholly owned subsidiaries, OMDA
Oil & Gas Management, Inc. and Texas OMDA Drilling &
Operating, Inc. and OMDA Oil & Gas, Inc. (Texas), are in the
business of oil and gas production and lease acquisition.
This release includes forward-looking statements made pursuant
to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995 that involve risks and uncertainties including,
but not limited to, statements relating to the future anticipated
direction of the Oil and Gas Industry, plans for expansion, various
business development activities, planned capital expenditures,
future funding resources, anticipated sales growth and potential
contracts. The Company is not obligated to revise or update any
forward-looking statements in order to reflect events or
circumstances that may arise after the date of this release.
Contact: OMDA Oil and Gas, Inc. Investor Relations 877-441 OMDA
(6632) IR@omogoil.com www.omogoil.com
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