SOURCE: Adino Energy Corporation

Adino Energy Corporation

November 22, 2011 11:19 ET

Adino Announces Acquisition of Assets From Ashton Oilfield Services, Inc.

HOUSTON, TX--(Marketwire - Nov 22, 2011) - Adino Energy Corporation (OTCQB: ADNY) (OTCBB: ADNY) announced the acquisition of all unencumbered assets owned by two limited partnerships managed by Ashton Oilfield Services, LLC ("Ashton").

On October 12, 2011, Adino Energy Corporation signed a letter of intent ("LOI") to purchase all of the assets of Ashton. Under the letter of intent, Adino will purchase the assets for six million dollars ($6,000,000) of preferred stock with an effective conversion price of $0.15 per share of common stock. The LOI allows for multiple closings as titles are cleared.

The assets transferred in the initial closing were purchased for one million five hundred thousand dollars ($1,500,000) worth of Adino's preferred stock and occurred on November 3, 2011. On November 14, 2011, Adino filed a Form 8-K with the Securities and Exchange Commission detailing the October 12, 2011 letter of intent and the November 3, 2011 closing.

Both Adino and Ashton are excited about what this acquisition could mean to both companies. Tim Byrd, CEO of Adino, stated, "We believe Ashton's assets and Adino Exploration's strategy could be a match made in heaven. One of the major assets we acquired is a drilling rig which we hope to modify and use to perform horizontal drilling on our Coates lease. The application of this technology in mature PUD reserves, which has already been proven to result in significant increases to daily production in the industry, should foster significant growth and development."

Scott Riggs, CEO of Ashton, commented, "I am extremely excited about our investment in Adino. As a drilling contractor working for Devon Energy Corporation last year, our drilling services were focused mainly on shallow well drilling and top-hole well design. With the rig that we sold to Adino in this initial closing, we were able to create efficiencies that permitted us to drill 60 wells in both New Mexico and Texas under the Devon contract. At our peak, we drilled as many as 10 wells per month with this rig design. This is one of the many reasons why we are excited about working with Adino. Adino's executive management team is focused on implementing what we believe is a fundamentally sound strategy that will result in significant increases to the Company's production and reserve value."

About Adino Energy Corporation, Inc.
Adino Energy Corporation (OTCQB: ADNY) (OTCBB: ADNY) is an emerging oil & gas exploration and production company focused on mature oilfield assets with significant redevelopment, work-over and enhanced oil recovery (EOR) potential. The Company also owns a fuel terminal operation in the Houston, TX area.

Forward-looking Statements
Statements made in this news release relating to Adino's future production, expenses and future capital projects and expenditures, and all other statements except statements of historical fact, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and the Company's future performance are both subject to a wide range of business risks and uncertainties and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements. Further information on risks and uncertainties that may affect the Company's operations and financial performance, and the forward-looking statements made herein, is available in the Company's filings with the Securities and Exchange Commission, which are incorporated by reference as though fully set forth herein.

Contact Information

  • Investor Relations
    Adino Energy Corporation
    Timothy G. Byrd, Sr.
    CEO
    Houston, Texas
    (281) 209-9800
    Email Contact