Core Resource Management Agrees to Acquire Working Interests in
Oklahoma Oil and Gas Properties in All-Equity Deals
The Mission of Core Resource Management, Inc. (OTCQB: CRMI) (“Core”
or the “Company”) to acquire and manage proven-producing wells and
assets has been advanced once again. Just after assisting Nitro
Petroleum, Inc. (NTRO) with the filing of a preliminary information
statement with the SEC regarding Core’s pending acquisition of
Nitro, James Clark and Phillip Nuciola III have announced the
pending acquisition by Core of several property interests from White
Stone Resources, LP (White Stone) and Royal Energy Resources, Inc.
(Royal). With the team of James Clark, CEO and Board Chairman
Phillip Nuciola III, Core will acquire the oil and gas assets of
both White Stone and Royal in exchange for equity of Core.
Both White Stone and Royal are private companies. They currently own
and are selling to Core nearly $1,800,000 in PV10 PDP properties.
White Stone and Royal’s interests appear to be very synergistic to
property interests already owned by Core. The properties are
minority interests of others and are also in close proximity to the
assets owned by Nitro. The new management team of Core and the board
of directors feel strongly that the newest acquisitions, with the
help of Core’s capital formation abilities, will increase company
value and monthly revenues.
Chief Executive Officer James Clark commented, “Our acquisitions
receiving attention this week are important to the Company’s
continued growth and the advancement of Core’s mission to acquire
and manage proven-producing wells and assets. It will help grow our
revenue base and scale us into a larger force in the domestic energy
sector. The addition of these new assets to our balance sheet along
with the compartmentalization of oil and gas expertise and our
expertise in the capital markets of our team, puts us in a unique
position for rapid expansion. We are pleased to welcome as
stockholders the partners of White Stone and Royal. The synergies we
can create as a larger company with key areas of expertise may allow
for growth in stockholder value for all.”
Core’s Chairman of the Board, Phillip Nuciola III, said the
investment bankers’ response was pleasing, with expressions of
interest well in excess of the amounts requested. He added, “This is
a positive indication of how our lenders view the quality of our
assets. Importantly, Core now has access to substantial
institutional cash, undrawn debt and working capital to support our
operations and fund further developmental plans and partner
interests as part of our growth strategy. We believe that the
opportunities created by our acquisitions will allow us to grow in a
time where we may be seeing tremendous value in the marketplace.”
A definitive LOI was signed by all parties on November 19. The final
purchase agreement and terms of the all-equity deal will be released
upon execution of the definitive purchase agreement expected to be
finalized before the end of November with an effective date of
November 1.
About the Company: Core Resource Management is a Phoenix-based oil
& gas company engaged in the acquisition of existing oil &
gas production in partnership with established oil & gas
operators in Texas and the Southwest. The Company does not currently
engage in direct exploration but will acquire positions of up to 50%
in current oil & gas production from well established operators,
seeking from time to time, to sell a percentage of their existing
production in order to recycle their capital into new leases and
wells. Management believes it can maximize value for its
shareholders while also negotiating fair and reasonable valuations
for its drilling partners.
Forward Looking Statements: Statements which are not historical
facts contained in this release are forward looking statements, such
as “immediately accretive” that involve risks and uncertainties,
including but not limited to, the effect of economic conditions, the
impact of competition, the results of financing efforts, changes in
consumers’ preferences and trends. The words “estimate,” “possible,”
and “seeking” and similar expressions identify forward-looking
statements, which speak only to the date the statement was made. The
Company undertakes no obligation to publicly update or revise any
forward-looking statements, because of new information, future
events, or otherwise. Future events and actual results may differ
materially from those set forth herein, contemplated by, or
underlying the forward looking statements.
The information herein is subject to change without notice. Core
Resource Management, Inc. shall not be liable for technical or
editorial errors or omissions contained herein.