SOURCE: Bayside Petroleum, Inc.

September 01, 2009 17:05 ET

Bayside Petroleum Company, Inc. to Acquire Oil Producer Nueces Valley Resources, Inc.

DALLAS, TX--(Marketwire - September 1, 2009) - BAYSIDE PETROLEUM COMPANY, INC. (PINKSHEETS: BYSD) is pleased to announce the signing of a Letter of Intent covering the acquisition through a merger with Nueces Valley Resources, Inc., also based in Dallas. The merger of the two companies is expected to be successfully concluded during September 2009 after the execution of a Sales and Plan of Merger Agreement and the approval of the shareholders of both companies.

Mr. Gordon H. Johnson, President and CEO of Bayside Petroleum, comments: "The acquisition of Nueces Valley Resources through a friendly merger represents a milestone in Bayside's growth plans, as it will immediately expand petroleum reserves and monthly production revenues as well as increase Bayside's development potential in the near term."

About Nueces Valley Resources, Inc. (NVR)

NVR owns and manages oil production of approximately 100 barrels per day in South Texas (Dimmit, Frio, Zavala and LaSalle Counties) and in N.E. Kansas (Douglas, Franklin and Miami Counties). NVR is the manager of a number of joint ventures that own interests in these wells. The wells in Texas number 34 and a number of them are candidates for rework and/or re-completion to enhance the daily production rates. The wells in Kansas number approximately 200 and produce oil from shallow depths, ranging from 300' to 950'. Every project in Kansas is a candidate for waterflooding (secondary recovery), which when installed significantly increases the daily production rates.

A PROFITABLE INDUSTRY NICHE

The reworking of 'marginal' oil & gas wells is a niche sector that offers extraordinary growth potential for industry specialists like Bayside. Thousands of mature oil and gas fields across the lower 48 states encompass hundreds of thousands of marginal wells, commonly referred to as 'stripper' or 'marginal' wells, i.e. wells that produce less than 15 barrels per day of crude oil. Few lay persons realize the importance of these wells and their significance to domestic crude oil supplies. Marginal wells produced more than 335 million barrels of oil in the United States in 2006. That's nearly two thirds as much as the United States imports annually from Saudi Arabia!

BAYSIDE ... Poised for Growth Through Oil & Gas Field Expertise

Dallas based Bayside Petroleum Company, Inc. is an aggressively managed energy exploration, development and production company in the process of building oil & gas reserves and production in some of the most prolific hydrocarbon bearing regions of the United States. The Company specializes in the profitable business of reworking 'marginal' oil & gas wells. The Company's management team has a proven record of success in the industry, and intends to foster rapid corporate growth through its ability to identify, acquire interests in, and rework oilfields that offer exceptionally attractive risk/reward parameters for oil production optimization.

In compliance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, Bayside Petroleum Company, Inc. notes that statements contained in this announcement that are not historical facts may be forward-looking statements that are subject to a variety of risks and uncertainties. Accordingly, Bayside wishes to caution readers of this announcement that its future actual results may differ materially from those that any forward-looking statements may imply. There is no assurance the above-described events will be completed. There can be no assurance of the ability of the Company to achieve sales goals, obtain contracts or financing, consummate acquisitions or achieve profitability in the future.

Contact Information