Contact Information: For More Information Contact: Thomas Rozycki CJP Communications for Platinum Energy Resources, Inc. Public & Investor Relations 212-279-3115 x208 tom@cjpcom.com
Platinum Energy Resources, Inc. Announces Share Repurchase Program
| Source: Platinum Energy Resources, Inc.
NEW YORK, NY--(Marketwire - November 1, 2007) - Platinum Energy Resources, Inc. ("Platinum
Energy") (OTCBB : PGRIU ) (OTCBB : PGRI ) (OTCBB : PGRIW ), announced today that
its board of directors has established a plan in conformity with the
provisions of Rules 10b5-1 to purchase up to 2,000,000 shares of Platinum
Energy common stock in open market transactions during the month of
November, subject to the broker, volume, price and timing restrictions of
Rule 10b-18 under the Securities Exchange Act of 1934. The Company will
finance the share repurchase program with available cash. This plan
constitutes the initial stage of the repurchase program approved by the
board in November 2006 to repurchase shares of common stock in an amount up
to $80 million.
On October 26, 2007, the Company issued to Tandem Energy Corporation
("Tandem Energy") 7,692,308 shares of common stock as part of its
acquisition of substantially all of the assets and liabilities of Tandem
Energy. The board of directors had determined that the repurchase program
was the best available use of the Company's cash to increase earnings per
share following the dilution caused by the issuance of shares in the
acquisition.
If all of the Platinum Energy shareholders requesting conversion of their
shares in connection with the acquisition of Tandem Energy comply with the
conversion procedures in a timely fashion, there will be 24,068,675 shares
of Platinum Energy's common stock outstanding, including the shares of
Platinum Energy common stock issued in connection with the acquisition.
Tandem Energy will not participate in the share repurchase program. On
October 31, 2007, Platinum Energy's common stock closed at $7.55.
About Platinum Energy
Platinum Energy, based in Montvale, New Jersey, is an oil and gas
exploration and production (E&P) company that completed its first
acquisition of an operating business in the E&P industry on October 26,
2007. Platinum Energy will seek to build a portfolio of assets using
multiple acquisitions subsequent to its first. Platinum Energy's strategy
calls for the use of hedge financing to maximize profit and reduce risk
resulting from volatile energy markets.
Platinum Energy was incorporated in April 2005 to acquire an operating
business in the energy industry. Platinum Energy completed its initial
public offering on October 24, 2005, receiving net proceeds of
approximately $106 million through the sale of 14.4 million units of its
securities at $8.00 per unit. Each unit is comprised of one share of
Platinum Energy common stock and one redeemable and convertible common
stock purchase warrant with an exercise price of $6.00. On October 17,
2007, Platinum Energy filed a definitive proxy statement, proposing the
acquisition of substantially all of the assets and liabilities of Tandem
Energy Corporation, which was voted on, and approved, by shareholders at a
special meeting of stockholders on October 26, 2007. Platinum Energy held
over $112 million in a trust account maintained by an independent trustee,
which was released to Platinum upon the consummation of the acquisition.
Following the consummation of the acquisition, Platinum Energy holds
approximately $64.6 million, including $14,057,199 reserved for the holders
who voted against the acquisition and elected to convert their shares.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning
of the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. In some cases, forward-looking statements can be identified by
words such as "believe," "expect," "anticipate," "plan," "potential,"
"continue," "intend" or similar expressions. Forward-looking statements
also include the assumptions underlying or relating to any of the foregoing
statements. Such forward-looking statements are based upon current
expectations and beliefs and are subject to a number of factors and
uncertainties that could cause actual results to differ materially from
those described in the forward-looking statements. The forward-looking
statements contained in this press release may include statements about
future financial and operating results. These statements are not guarantees
of future performance, involve certain risks, uncertainties and assumptions
that are difficult to predict, and are based upon assumptions as to future
events that may not prove accurate. Therefore, actual outcomes and results
may differ materially from what is expressed herein. In any
forward-looking statement in which Platinum Energy expresses an expectation
or belief as to future results, such expectation or belief is expressed in
good faith and believed to have a reasonable basis, but there can be no
assurance that the statement or expectation or belief will result or be
achieved or accomplished. All forward-looking statements included in this
press release are based on information available to Platinum Energy on the
date hereof. The following factors, among others, could cause actual
results to differ from those set forth in the forward-looking statements:
business conditions in the U.S. and abroad; changing interpretations of
generally accepted accounting principles; outcomes of government reviews;
inquiries and investigations and related litigation; continued compliance
with government regulations; legislation or regulatory environments,
requirements or changes adversely affecting the businesses in which Tandem
Energy Corporation is engaged; fluctuations in oil and gas prices and in
customer demand; management of rapid growth; intensity of competition;
general economic conditions; as well as other relevant risks detailed in
Platinum Energy's filings with the Securities and Exchange Commission.
Neither Platinum Energy nor Tandem Energy Corporation assumes any
obligation to update the information contained in this press release.