BROOMFIELD, Colo., April 8, 2015 /PRNewswire/ -- T-Rex Oil,
Inc. (OTC: TRXO) ("TRXO" or the "Company"), an independent energy
company with a focus on the Rocky Mountain region announced on
Friday March 27, 2015 it completed
the previously announced acquisition contract of Western Interior
Oil & Gas, Inc. ("WIOG"), a Wyoming corporation through an exchange for
83% of the issued and outstanding stock of WIOG for 7,470,000
restricted common shares of TRXO. The additional 17% of WIOG is
being negotiated for 1,530,000 shares and will result in a total of
9,000,000 TRXO shares having been issued. As a result of the
transaction, TRXO will assume ownership and operatorship of all of
WIOG operated properties and leases in Wyoming.
Key attributes of WIOG properties include the following:
- Approximately 15,895 gross (8,643 net) acres located in
Big Horn, Carbon, and Park Counties, Wyoming.
- Approximately 54% of the acreage is operated, and 46% is
non-operated.
- Essentially all of the acreage is held by production from
existing wells and production units with net revenue interest
greater than 75%.
- Average net daily production during the fourth quarter of 2014
of approximately 50 BOE per day (approximately 98% oil).
Net proved developed producing ("PDP") oil and natural gas
reserves of approximately 174,000 BOE (approximately 100% oil) as
of December 31, 2014, based on an
independent reserves analysis prepared by Netherland Sewell. Notably, no proved developed
non-producing ("PDNP") nor proved undeveloped ("PUD") reserves have
been assigned to these properties.
The WIOG assets strategically place TRXO in three basin resource
plays in Wyoming. The acquired
acreage increases TRXO's total acreage position in Wyoming at March 31,
2015 to approximately 34,455 gross (19,579 net) acres,
providing TRXO with an increased operational footprint throughout
the northern Rockies.
Pursuant to the final terms of the transaction, TRXO assumed
debt obligations of approximately $650,000. The transaction makes WIOG shareholders
one of TRXO's largest shareholder groups with approximately 48%
ownership when all shares are exchanged. Two directors from the
WIOG shareholder base will be appointed to the TRXO Board within
the next 30 days.
Don Walford, Chairman and CEO of
the TRXO, stated, "We are pleased to have successfully closed this
acquisition with WIOG shareholders, and we are excited to expand
our prospect areas in prime Wyoming resource plays with some proven
production. We look forward to having Eckhardt Huber-Flotho and Werner Georg Biberacher join our board and
combining the key employees of WIOG into TRXO, all of whom add
expertise and deep industry experience to our own experienced
staff. We believe together we can continue to build focused
industry players in the Northern Rockies in Wyoming."
Based on March 30, 2015's market
price of $2.56, the 9,000,000 shares
have a market valuation of approximately 23,000,000
About T-Rex Oil, Inc.
T-Rex Oil, Inc. is an energy company focused on acquiring,
exploring, developing and producing oil and natural gas properties
predominately in the central and western United States. The Company's executives have
extensive experience in managing oil and gas properties. T-Rex Oil,
Inc. has acquired producing wells, leases and water disposal
properties in Wyoming,
Nebraska, and Utah and is actively pursuing other
opportunities in Colorado. The
Company's goal is to build steady, sustainable growth of its
inventory of oil and gas properties. T-Rex Oil, Inc. is
headquartered in Broomfield,
Colorado. More information can be found at
www.t-rexoilinc.com.
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Exchange Act of 1934, as amended.
Actual results and future events could differ materially from those
anticipated in such statements, and such forward-looking statements
may not prove to be accurate. These forward-looking statements
involve certain risks and uncertainties, including, but not limited
to, the following risks related to financial and operational
performance: the Company's ability to execute its business plan;
changes in prices and demand for oil and natural gas prices;
difficulties related to producing oil and natural gas; its ability
to make acquisitions; its ability to integrate acquisitions,
including the WIOG acquisition; availability of sufficient capital
to execute its business plan; and other factors which could cause
actual results to differ materially from those anticipated or
implied in the forward-looking statements. For further discussions
of risks and uncertainties, you should refer to our SEC
filings. T-Rex undertakes no obligation and does not intend
to update these forward-looking statements to reflect events
occurring after the date of this press release, except as required
by law, including the rules and regulations of the SEC. Any
forward-looking statements speak only as of the date of this press
release. All forward-looking statements are qualified in their
entirety by this cautionary statement.
Contact: Paige Coutts,
paige@t-rexoilinc.com
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SOURCE T-Rex Oil, Inc.