PHOENIX, AZ -- (Marketwired) -- 08/04/14 -- Core Resource Management, Inc. (OTCQB: CRMI) ("Core") (www.coreresource.net) -- Core Resource Management is a Phoenix-based oil & gas company engaged in the acquisition of oil & gas assets in conjunction with established oil & gas operators, primarily in Texas and the Southwest.
Core proudly announces that it has entered into a joint venture agreement with TransCoastal Corporation (OTCQB: TCEC), an independent energy development company, to drill up to 10 wells on acreage owned by TransCoastal in the Texas Panhandle near Pampa, Texas.
The agreement stipulates that CRMI will fund 100% of the drilling and completion costs of up to $475,000 per well. Any additional drilling and completion expenses for each well will be split 60% to TransCoastal and 40% to CRMI. Upon completion of each well, CRMI will receive 60% of the net revenues allocable to the well and Transcoastal will receive 40% until CRMI receives a return of its investment in the well, and thereafter each party will receive 50% of the net revenue in each well. CoreTerra Operating, a subsidiary of TransCoastal, has entered into a contract with the joint vernture to be the official operator of each well drilled by the venture.
Chief Executive officer James Clark commented, "This joint venture marks another step in the continuing progress of acquiring revenue-producing assets to build our company's revenue model and bring value to our shareholders. The single well economics on the Pampa acreage is by far the best we have seen. We are extremely excited about spudding our first well there shortly. This joint venture compliments the company's structured business strategy of acquiring non-operating positions of up to 50% in oil & gas assets from well-established operators."
Casimir Capital L.P. ("Casimir Capital") acted as the exclusive advisor on the transaction.
Forward Looking Statements: Statements which are not historical facts contained in this release are forward looking statements, such as "costs paid back" 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 "progress," "value," and "well-established" and similar expressions identify forward-looking statements, which speak only to the date the statement was made. Risk factors exist and may change the potential outcome. Such factors include, but are not limited to, the timing and extent of changes in market conditions and prices for natural gas and oil; thereby future events and actual results may differ materially from those set forth herein, contemplated by, or underlying the forward looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, which are valid only as of the date they were made.
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.
Core Resource Management, Inc.
Dennis W. Miller
Interim Chief Executive Officer, Director
3131 E. Camelback Rd. STE 211
Phoenix, AZ 85016
Source: Core Resource Management, Inc.
Released August 4, 2014