Contact Information: Contact: Brad Holmes Investor Relations (713) 654-4009 or Don Kirkendall President (832) 369-6986
Petro Resources Sells Partnership Interest and Redeems Preferred Stock
| Source: Petro Resources Corporation
HOUSTON, TX--(Marketwire - September 29, 2008) - Petro Resources Corporation (AMEX : PRC ) ("the
Company") announced today that it has sold the Company's 5.33% limited
partner interest in Hall-Houston Exploration II, L. P. The interest was
purchased by a privately owned partnership for a cash consideration of
$8.00 million. The Company will realize a net gain on the sale of the
asset of approximately $1.10 million for the quarter ending September 30,
2008.
The Company used approximately $7.97 million of the proceeds from this
transaction to redeem 2,563,712 shares of the Company's outstanding Series
A Preferred Stock at a price of $3.00 per share plus accrued dividends.
The shares were held by investment funds managed by Touradji Capital
Management. Pursuant to the terms of the Series A Preferred Stock, the
Company was required to redeem all Series A Preferred Stock no later than
October 2, 2008. After giving effect to the redemption, there is no Series
A Preferred Stock outstanding.
The Company's Chief Executive Officer, Wayne Hall, commented, "This key
transaction allows us to clean up the balance sheet with the redemption of
the preferred stock and to preserve that corresponding amount of
availability under our new senior credit facility for use in our capital
program."
About Petro Resources
Petro Resources Corporation is an independent exploration and production
company engaged in acquisitions of exploratory leases, acquisitions of
producing properties, secondary enhanced oil recovery projects, exploratory
drilling, and production of oil and natural gas in the United States.
The Company is currently producing oil and natural gas from a
geographically and geologically diversified reserve base. The Company's net
total proved reserves of more than 3.0 million barrels of oil equivalent is
distributed among 18 fields in the states of North Dakota, Texas, and
Louisiana.
For more information, please view our website at
www.petroresourcescorp.com.
Forward-looking Statements
The statements contained in this press release that are not historical are
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended (the "Securities Act"), and Section 21E
of the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
including statements, without limitation, regarding the Company's
expectations, beliefs, intentions or strategies regarding the future. Such
forward-looking statements relate to, among other things: (1) the Company's
proposed exploration and drilling operations on its various properties, (2)
the expected production and revenue from its various properties, and (3)
estimates regarding the reserve potential of its various properties. These
statements are qualified by important factors that could cause the
Company's actual results to differ materially from those reflected by the
forward-looking statements. Such factors include but are not limited to:
(1) the Company's ability to finance the continued exploration and drilling
operations on its various properties, (2) positive confirmation of the
reserves, production and operating expenses associated with its various
properties; and (3) the general risks associated with oil and gas
exploration and development, including those risks and factors described
from time to time in the Company's reports and registration statements
filed with the Securities and Exchange Commission, including but not
limited to the Company's Annual Report on Form 10-K for the year ended
December 31, 2007 and Form 10-Q for the quarters ended March 31, 2008 and
June 30, 2008. The Company cautions readers not to place undue reliance on
any forward-looking statements. The Company does not undertake, and
specifically disclaims any obligation, to update or revise such statements
to reflect new circumstances or unanticipated events as they occur.