Omni Oil & Gas, Inc.
Announces Sale of Interest in Oil Field
DALLAS, TX -- (Business
Wire) – June 27, 2007 -- Omni Oil & Gas, Inc. (OMOI.PK,
www.omnioil.com),
a company specialized in oil and gas exploration and
production, announced today that it has executed a
Purchase and Sale Agreement with BSI Energy Partners I,
LLC (BSI) for a 50% working interest in Omni’s Red River
Bull Bayou Field Unit (RRBB) located in Red River
Parish, Louisiana.
Under the terms of the
Agreement, Omni will sell 50% of the Red River Bull
Bayou Unit to BSI, a Dallas, Texas and Ventura,
California-based energy investment fund, in exchange for
cash consideration of $1,000,000 plus Omni’s share of
the first $950,000 of
field expenditures for the Unit’s redevelopment. It is
anticipated that 200 to 400 barrels of oil per day (bopd)
will be acquired from the initial phase of
redevelopment.
“Having BSI as a working
partner greatly advances Omni toward its goal of
aggressive growth through development of its core asset
base,” stated Jim Renfro, Omni President and CEO. “With
BSI’s significant contribution of capital and technical
resources, we expect a very successful partnership in
this as well as many more transactions.”
The RRBB Field Unit covers
approximately 7,300 acres of land and is a former
secondary recovery project operated by Sun Oil Company
(now Anadarko). The Unit has accumulated oil production
of 25 million barrels of oil and third-party engineering
reports indicate that at minimum an additional 2.5
million barrels of oil can be recovered.
Omni projects that the
proceeds from the transaction will provide sufficient
working capital for the Company through the point of
self-sustaining cash flow from oil production at RRBB,
as well as from additional oil field developments
currently underway.
About
Omni Oil & Gas, Inc.:
Omni Oil &
Gas, Inc. (www.omnioil.com)
specializes in the purchase, rework and enhancement of
properties in proven oil and gas fields. This business
methodology offers lower potential risk and higher
potential returns, often in shorter time periods, than
through traditional means of oil and gas exploration.
To date, Omni has assembled, and is reworking, a
portfolio of eleven oil and gas fields throughout Texas,
Louisiana and Oklahoma with over 100 wells producing, or
capable of producing, and net proven future oil and gas
reserves valued at over $60 million.
About
InfusionCapital:
InfusionCapital (www.infusioncapital.com),
an investment banking consultancy firm, specializes in a
unique, integrated approach to capital formation for
smallcap and emerging growth companies. The firm has
extensive experience in assisting client companies with
each phase of capitalization and the complex processes
that accompany it.
For more
information, contact:
Andrew
Zelman
InfusionCapital
407-566-1090
www.infusioncapital.com
