xchc news out
HOUSTON, Jun 26, 2012 (BUSINESS WIRE) -- X-Change Corporation (otcqb:XCHC.PK) announced today through its subsidiary Cress Oil, Inc., an independent exploration and production company based in Houston, Texas that it has executed a deal for 15,000 net mineral acres in Roosevelt and Daniels County, Montana with Diverse Energy Investments, LLC. The transaction price is Eight Million Eight hundred twelve thousand ($8,812,000.00). The closing date is set for August 10, 2012.
"The additional acreage in Daniels and Roosevelt County is a great fit with the company's drilling and production strategy in the NE Montana Bakken shale play," states Atul Trivedi, chief executive. "By acquiring a footprint of 150,000 net acreage positions in northeast and central Montana, the company can focus on its aggressive drilling program it has planned for 2012 and 2013."
The Bakken Shale in the NE Montana area is from the Devonian Mississippian age. The widespread Upper Devonian-Lower Mississippian Bakken formation consists of an upper and a lower shale member with a mixed siliciclastic carbonate middle member that is usually referred to as dolomitic sand (or a sandy dolomite). Both the upper and lower shales are organic-rich marine shale of relatively consistent lithology. These shales are both the petroleum source rocks (organic rich) and seal for the reservoir.
The Bakken has reserve estimates up to 24 billion barrels of recoverable oil. More than 6000 wells are active in the Bakken shale, and wells continue to be drilled in North Dakota and NE Montana. The shift is moving towards aggressive drilling in the NE and central Montana Bakken Shale counties.
In addition -- X-Change Corporation announced today that it amended its contract for additional funding through La Jolla Cove Capital Investors to meet the growing capital requirements of Cress Oil, a wholly owned subsidiary of X-Change Corporation. The Company entered into a financing arrangement with La Jolla Cove Capital that provides $2,800,000 of additional equity financing over a period of 18 months.
Cress Oil will have immediate working capital resources to focus on near term acquisitions and its northeast and central Montana aggressive drilling program it has planned for 2012 and 2013 in Teton, Roosevelt and Daniels County, Montana.
About X-Change Corporation
X-Change Corporation is building interests in a broad range of oil and gas projects worldwide. The Company is an independent energy company engaged in the production, development, acquisition, exploitation and exploration of crude oil and natural gas.
About Cress Oil
Cress Oil is focused on projects for deep and shallow wells domestically and internationally. Cress Oil will partner with other oil and gas companies to explore for reserves on properties the majors have left behind. Cress Oil earns an interest in new reserves acquired and in production. The company intends to grow through a combination of exploration, exploitation, development drilling and drilling services, as well as strategic acquisitions of oil and natural gas fields. For more information, please visit www.cressoil.com
This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement containing works such as "anticipate," "seek," intend," "believe," "plan," "estimate," "expect," "project," "plan," or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Some or all of the events or results anticipated by these forward-looking statements may not occur. Factors that could cause or contribute to such differences include the future U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations
SOURCE: X-Change Corporation
