CGrowth Capital, Inc. Closes Second Transaction on Wyoming Oil Project
CGrowth Capital, Inc. Closes Second Transaction on Wyoming Oil Project
Transaction Increases Working Interest in Well to 100%
SILVERDALE, WA--(Marketwired - Nov 26, 2013) - CGrowth Capital, Inc. (OTC Pink: CGRA) (the "Company") is pleased to announce that it has closed escrow on an additional 50% Working Interest in a producing oil well located on the Company's recently purchased West Salt Creek oil project. The purchase includes the active well with the remaining current production along with the associated fixtures, pumps, and tanks for the current field operation.
"This second closing wraps up the initial targets on the main property, with a third segment being negotiated that we hope to secure this year," stated Bill Wright, CEO of CGrowth Capital, Inc. "One of the problems that our predecessor was faced with was the fractional interests by multiple parties on the site. This created a difficult situation for them to move forward with financing and project plans. This closes out the fractional interests on the overall site and this particular well, enabling us to move forward with financing and work over plans."
Mr. Wright continued, "We are in a good position with respect to the existing wells on the site. Those that were either not producing or were marginally productive are now under contract to be worked over by a third party at no outward cost to the Company. With respect to this particular well, it was important for us to wrap up the Working Interest prior to redevelopment and increased production. We will now be working to close out a financing arrangement that will include a work over that projects overall production to significantly increase."
The Effective Date of the purchase has been tied to the original Purchase and Sale Agreement effective September 30, 2013 and will be reflected in the Company's fourth quarter financials. The purchase price for the well interest and equipment is $800,000. The Company paid for the acquisition through the issuance of a) $750,000 in Preferred A stock (which amounted to 75,000 shares of Preferred A stock valued at $10.00 per shares). The shares have a two year lock up, may be called by the Company during that time period at the stated price plus a 6% cumulative annual premium, and may be converted to common shares after the hold period at a 20% discount to market; and b) $50,000 in Common stock (which amounted to 500,000 shares of Common stock valued at $0.10 per share). The common stock is subject to a 1 year lock up, a metering and block trade restriction, and Rule 144. At no time may the seller own more than 4.9% of the Commons shares of the Company. Additionally, the Company issued Warrants to the seller for the purchase of 250,000 shares of Common stock. The Warrants have a strike price of $0.50 per share, expire on the fifth anniversary of the closing, and are to be paid for in cash.
Located in the Powder River Basin, the property boarders and shares the same physical characteristics as Anadarko Petroleum's Salt Creek project (thus the West Salt Creek name).
For more information on the latest Commodity Prices visit: http://www.nasdaq.com/markets/commodities.aspx
For more information about CGrowth Capital, visit their website: http://www.CGrowthCapital.com
About CGrowth Capital, Inc.:
CGrowth Capital, Inc. serves as a holding company for businesses and assets focused on all aspects of mining, minerals, and oil and gas exploration. The processing of metal ore mining and oil and gas exploration both represent multi-billion dollar market opportunities which are capitalized through processing, sales, contracting and licensing of assets. CGrowth Capital's services and solutions are designed to assist land owners with monetizing undervalued assets by bringing commodities such as gold, silver, oil and gas, and other minerals to market. CGrowth Capital will focus on acquiring, leasing, or "claiming" land assets, while also providing partners and affiliates with management services, capital, contract management and logistical services necessary for the successful execution of mining exploration and operations.
Safe Harbor
Statements about the Company'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. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. The above information contains information relating to the Company that is based on the beliefs of the Company and/or its management as well as assumptions made by and information currently available to the Company or its management. When used in this document, the words "anticipate," "estimate," "expect," "intend," "plans," "projects," and similar expressions, as they relate to the Company or its management, are intended to identify forward-looking statements. Such statements reflect the current view of the Company regarding future events and are subject to certain risks, uncertainties and assumptions, including the risks and uncertainties noted. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended or projected. In each instance, forward-looking information should be considered in light of the accompanying meaningful cautionary statements herein. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, the impact of competitive services and pricing and general economic risks and uncertainties. The Company disclaims any obligation to update or revise any forward-looking statements.
Investor Inquiries:
CGrowth Capital, Inc.
888-218-2472
CGrowth Capital, Inc. Closes Second Transaction on Wyoming Oil Project
Transaction Increases Working Interest in Well to 100%
SILVERDALE, WA--(Marketwired - Nov 26, 2013) - CGrowth Capital, Inc. (OTC Pink: CGRA) (the "Company") is pleased to announce that it has closed escrow on an additional 50% Working Interest in a producing oil well located on the Company's recently purchased West Salt Creek oil project. The purchase includes the active well with the remaining current production along with the associated fixtures, pumps, and tanks for the current field operation.
"This second closing wraps up the initial targets on the main property, with a third segment being negotiated that we hope to secure this year," stated Bill Wright, CEO of CGrowth Capital, Inc. "One of the problems that our predecessor was faced with was the fractional interests by multiple parties on the site. This created a difficult situation for them to move forward with financing and project plans. This closes out the fractional interests on the overall site and this particular well, enabling us to move forward with financing and work over plans."
Mr. Wright continued, "We are in a good position with respect to the existing wells on the site. Those that were either not producing or were marginally productive are now under contract to be worked over by a third party at no outward cost to the Company. With respect to this particular well, it was important for us to wrap up the Working Interest prior to redevelopment and increased production. We will now be working to close out a financing arrangement that will include a work over that projects overall production to significantly increase."
The Effective Date of the purchase has been tied to the original Purchase and Sale Agreement effective September 30, 2013 and will be reflected in the Company's fourth quarter financials. The purchase price for the well interest and equipment is $800,000. The Company paid for the acquisition through the issuance of a) $750,000 in Preferred A stock (which amounted to 75,000 shares of Preferred A stock valued at $10.00 per shares). The shares have a two year lock up, may be called by the Company during that time period at the stated price plus a 6% cumulative annual premium, and may be converted to common shares after the hold period at a 20% discount to market; and b) $50,000 in Common stock (which amounted to 500,000 shares of Common stock valued at $0.10 per share). The common stock is subject to a 1 year lock up, a metering and block trade restriction, and Rule 144. At no time may the seller own more than 4.9% of the Commons shares of the Company. Additionally, the Company issued Warrants to the seller for the purchase of 250,000 shares of Common stock. The Warrants have a strike price of $0.50 per share, expire on the fifth anniversary of the closing, and are to be paid for in cash.
Located in the Powder River Basin, the property boarders and shares the same physical characteristics as Anadarko Petroleum's Salt Creek project (thus the West Salt Creek name).
For more information on the latest Commodity Prices visit: http://www.nasdaq.com/markets/commodities.aspx
For more information about CGrowth Capital, visit their website: http://www.CGrowthCapital.com
About CGrowth Capital, Inc.:
CGrowth Capital, Inc. serves as a holding company for businesses and assets focused on all aspects of mining, minerals, and oil and gas exploration. The processing of metal ore mining and oil and gas exploration both represent multi-billion dollar market opportunities which are capitalized through processing, sales, contracting and licensing of assets. CGrowth Capital's services and solutions are designed to assist land owners with monetizing undervalued assets by bringing commodities such as gold, silver, oil and gas, and other minerals to market. CGrowth Capital will focus on acquiring, leasing, or "claiming" land assets, while also providing partners and affiliates with management services, capital, contract management and logistical services necessary for the successful execution of mining exploration and operations.
Safe Harbor
Statements about the Company'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. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. The above information contains information relating to the Company that is based on the beliefs of the Company and/or its management as well as assumptions made by and information currently available to the Company or its management. When used in this document, the words "anticipate," "estimate," "expect," "intend," "plans," "projects," and similar expressions, as they relate to the Company or its management, are intended to identify forward-looking statements. Such statements reflect the current view of the Company regarding future events and are subject to certain risks, uncertainties and assumptions, including the risks and uncertainties noted. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended or projected. In each instance, forward-looking information should be considered in light of the accompanying meaningful cautionary statements herein. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, the impact of competitive services and pricing and general economic risks and uncertainties. The Company disclaims any obligation to update or revise any forward-looking statements.
Investor Inquiries:
CGrowth Capital, Inc.
888-218-2472
