Armada Oil, Inc. Provides Financing Update
Armada Oil, Inc. (the “Company”) (OTCBB:AOIL), an oil and gas exploration and production company, provided an update today on its current financing initiative.
The Company’s executive management team is continuing to work diligently to complete an all-inclusive financing package that would not only allow for significant new development in the Company’s south Louisiana fields but would also provide capital to initiate additional acquisition and/or drilling activities in its other project areas. As part of this package, the Company has received convertible bridge financing of $600,000 to enable it to proceed with important workover activity on two of its wells in the Lake Hermitage Field. This work is underway, is expected to be completed this month and should result in increases in both production and reserves. The overall financing transaction is now expected to close on or before December 31, 2013. Additional work in the Company’s south Louisiana project area is expected to begin in January of 2014 with drilling in other project areas expected to begin as soon as weather, final land title review, location selection and well planning allow.
The significant increase in capital availability that is expected to come from the financing package referenced above will be highly beneficial as it will give the Company the ability to develop its proved reserves in its south Louisiana fields at a much faster rate than would result from financing the work solely out of cash flow. It will also enable the Company to initiate acquisition and drilling activities in its other project areas.
“We continue to work aggressively to complete this financing initiative and will share additional information as soon as confidentiality agreements allow us to do so,” said Randy M. Griffin, CEO of Armada Oil, Inc. “Our technical team is prepared to immediately proceed with activities in all of our project areas as soon as the transaction has been completed and capital is available.”
About Armada Oil, Inc.
Armada Oil, Inc. (OTCBB: AOIL), headquartered in Dallas, Texas, is a growth-oriented oil and gas Exploration and Production (E&P) company with a focus on growing reserves and net asset value per share, primarily through the acquisition, development and enhancement of multiple onshore oil and natural gas producing properties as well as the development of highly diversified developmental drilling opportunities, both conventional and unconventional. The Company currently has producing oil properties in Plaquemines and Lafourche Parishes in Louisiana. In addition, the Company has developmental properties in Garfield and Major Counties, OK and Wyoming County, NY and controls a strategic acreage position in southern Wyoming in the liquids-rich Niobrara Play.
More information about Armada Oil may be found at http://www.armadaoil.us.
Forward-Looking Statements
Certain statements in this news release, which are not historical facts, are forward-looking statements. These statements are subject to risks and uncertainties. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Actual results may differ materially from those currently anticipated due to a number of factors which may be beyond the reasonable control of the Company, including, but not limited to, the Company’s ability to locate and acquire suitable interests in oil and gas properties on terms acceptable to the Company, the availability and pricing of additional capital to finance operations and leasehold acquisitions, the ability of the Company to build and maintain a successful operations infrastructure, the Company’s ability to integrate acquired assets, the intensity of competition and changes and volatility in energy prices. Readers are urged not to place undue reliance on the forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release. Additional information on risks and other factors that may affect the business and financial results of the Company can be found in the filings of the Company with the U.S. Securities and Exchange Commission at www.sec.gov.
Armada Oil Inc.
972-490-9595
ir@armadaoil.us
Armada Oil, Inc. (the “Company”) (OTCBB:AOIL), an oil and gas exploration and production company, provided an update today on its current financing initiative.
The Company’s executive management team is continuing to work diligently to complete an all-inclusive financing package that would not only allow for significant new development in the Company’s south Louisiana fields but would also provide capital to initiate additional acquisition and/or drilling activities in its other project areas. As part of this package, the Company has received convertible bridge financing of $600,000 to enable it to proceed with important workover activity on two of its wells in the Lake Hermitage Field. This work is underway, is expected to be completed this month and should result in increases in both production and reserves. The overall financing transaction is now expected to close on or before December 31, 2013. Additional work in the Company’s south Louisiana project area is expected to begin in January of 2014 with drilling in other project areas expected to begin as soon as weather, final land title review, location selection and well planning allow.
The significant increase in capital availability that is expected to come from the financing package referenced above will be highly beneficial as it will give the Company the ability to develop its proved reserves in its south Louisiana fields at a much faster rate than would result from financing the work solely out of cash flow. It will also enable the Company to initiate acquisition and drilling activities in its other project areas.
“We continue to work aggressively to complete this financing initiative and will share additional information as soon as confidentiality agreements allow us to do so,” said Randy M. Griffin, CEO of Armada Oil, Inc. “Our technical team is prepared to immediately proceed with activities in all of our project areas as soon as the transaction has been completed and capital is available.”
About Armada Oil, Inc.
Armada Oil, Inc. (OTCBB: AOIL), headquartered in Dallas, Texas, is a growth-oriented oil and gas Exploration and Production (E&P) company with a focus on growing reserves and net asset value per share, primarily through the acquisition, development and enhancement of multiple onshore oil and natural gas producing properties as well as the development of highly diversified developmental drilling opportunities, both conventional and unconventional. The Company currently has producing oil properties in Plaquemines and Lafourche Parishes in Louisiana. In addition, the Company has developmental properties in Garfield and Major Counties, OK and Wyoming County, NY and controls a strategic acreage position in southern Wyoming in the liquids-rich Niobrara Play.
More information about Armada Oil may be found at http://www.armadaoil.us.
Forward-Looking Statements
Certain statements in this news release, which are not historical facts, are forward-looking statements. These statements are subject to risks and uncertainties. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Actual results may differ materially from those currently anticipated due to a number of factors which may be beyond the reasonable control of the Company, including, but not limited to, the Company’s ability to locate and acquire suitable interests in oil and gas properties on terms acceptable to the Company, the availability and pricing of additional capital to finance operations and leasehold acquisitions, the ability of the Company to build and maintain a successful operations infrastructure, the Company’s ability to integrate acquired assets, the intensity of competition and changes and volatility in energy prices. Readers are urged not to place undue reliance on the forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release. Additional information on risks and other factors that may affect the business and financial results of the Company can be found in the filings of the Company with the U.S. Securities and Exchange Commission at www.sec.gov.
Armada Oil Inc.
972-490-9595
ir@armadaoil.us
