1st NRG Corp. Updates Operations
DENVER, Dec. 12, 2012 /PRNewswire/ -- 1st NRG
Corp. (OTC Markets: FNRC.PK, http://1stnrg-corp.com ) re-releases
an update on the company's operations.
Bakken/Three Forks
The Company's plans include
participation in a prospect which will test the Bakken Shale and
Three Forks formations encompassing approximately 9,800 acres and
the initial test well is scheduled to start drilling prior to the
end of 2012.
Utica Shale – Eastern
Ohio
The Company finalized an agreement to develop
approximately 7,150 acres in Eastern
Ohio, one of the most active areas for oil, natural gas and
natural gas liquids exploration in the United States.
Niobrara Shale – Western
Nebraska
The Company also finalized an agreement
which will deliver an Oil and Gas Lease and surface use agreement
for 1,370 acres located in Banner County Nebraska.
CBM – Northern
Wyoming
Our current CBM properties are characterized
by what we believe to be low geologic risk and repeatable
development opportunity. Clabaugh Ranch is about 18 miles
northwest of Gillette Wyoming and
all of the wells drilled there have encountered developed coal
seams in the Warner, Upper and Lower Smith, Wyodak/Anderson Lower, Gates and Wall
formations.
The Clabaugh Ranch field has had 42 wells drilled through
September 30, 2012 with a success
rate of 100%. Our drilling inventory consists of 8 permitted
well locations (6 net), all of which are CBM resource
opportunities. Further development of Clabaugh Ranch is being
evaluated.
Financing
In late October, the Company executed a
credit facility which could make up to $7,000,000 available to the Company.
The facility will allow the Company to draw in one or multiple
tranches as agreed to between the lender and the Company. The
Note will mature in three years from the date of the first draw and
will bear interest at 8% on drawn funds. Any outstanding
amounts due under the Note may be converted at maturity into the
Company's common stock at the average of the lowest bid for the ten
days prior to conversion.
In January 2011, 1st
NRG Corp closed a transaction with nine qualified investors
pursuant to which the Investors purchased a private placement of
Units consisting of 449,269 Preferred "A" Shares (each Preferred
"A" convertible into 44,926,902 Common Shares) and Warrants to
purchase Common Shares. The total Unit purchase was
$14,452,014.45 and in September 2012, the Investors converted the
Preferred "A" Shares into the Company's common stock. An
Account Management Agreement (AMA) between the Investors and the
Company governs the release of funds to the Company by an
Intermediary.
See the company website for updates, at
http://1stnrg-corp.com
Forward-Looking Statement
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 identified by the words "expects," "projects,"
"plans," "feels," "anticipates" and certain of the other foregoing
statements may be deemed "forward-looking statements." Although
1st NRG believes that the expectations reflected in such
forward-looking statements are reasonable, these statements involve
risks and uncertainties that may cause actual future activities and
results to be materially different from those suggested or
described in this press release. These include risks inherent in
the drilling of oil and natural gas wells, including risks of fire,
explosion, blowout, pipe failure, casing collapse, unusual or
unexpected formation pressures, environmental hazards, and other
operating and production risks inherent in oil and natural gas
drilling and production activities, which may temporarily or
permanently reduce production or cause initial production or test
results to not be indicative of future well performance or delay
the timing of sales or completion of drilling operations; risks
with respect to oil and natural gas prices, a material decline in
production which could cause the Company to delay or suspend
planned drilling operations or reduce production levels; and risks
relating to the availability of capital to fund drilling operations
that can be adversely affected by adverse drilling results,
production declines and declines in oil and gas prices and other
risk factors.
Contact Information:
Brad Holmes, EnergyIR
(713)654-4009
B_holmes@att.net
SOURCE 1st NRG Corp.
