SOURCE: CGrowth Capital, Inc.
SILVERDALE, WA--(Marketwired - Sep 17, 2013) - CGrowth Capital, Inc. (OTC Pink: CGRA) (the "Company") is pleased to announce that it has completed the Purchase and Sale Agreement ("PSA") for the purchase of an initial 2,064 acres of Wyoming oil leases with 65 offset drilling locations from West Salt Creek, Inc. ("WSC"). The leases, located in the Powder River Basin, include active wells with current production along with the associated fixtures, pumps, vehicles, and tanks for the current field operation. The Company is working to close the transaction through escrow as soon as possible.
"This is a significant accomplishment for the Company," stated Bill Wright, CEO of CGrowth Capital, Inc. "We have worked diligently with West Salt Creek management to pull everything together in an expedited manner and everyone has performed professionally. The immediate production revenues will start to swing the financial tide for us as a company. Once we are able to perform a few work-overs on existing wells and drill new wells on identified locations the financial outlook for the company will continue upward."
Montgomery George, President of West Salt Creek, Inc., stated, "We have been able to put together a very positive and mutually beneficial agreement for both CGrowth Capital and our shareholders. The immediate daily production from our oil fields along with the deep asset base that CGrowth Capital has in their mineral base will combine for a very strong company moving forward." Mr. George continued, "The commitment that Mr. Wright and his team showed towards current shareholders and positioning the company for future growth affirmed to us that we were making the right decision."
Current production on the 100% working interest leases is 12-13 BOPD. A revitalization plan for the existing wells anticipates increasing the production to over 100 BOPD. In addition to these current leases, the Company will maintain a 20% working interest in a group of wells currently in a revitalization plan with a third party in the field. The Company is anticipating the net interest in these wells to be 35 BOPD upon completion of the revitalization. Geological reports for the area are estimating oil potential up to seven million barrels of oil.
For more information about CGrowth Capital, visit their website: http://www.CGrowthCapital.com
About CGrowth Capital, Inc.:
CGrowth Capital, Inc. serves as a holding company for businesses and assets focused on all aspects of mining. The processing of metal ore mining is a multi-billion dollar market opportunity which is capitalized through processing, sales, contracting and licensing of assets. CGrowth Capital's services and solutions are designed to assist land owners with monetizing undervalued assets by bringing commodities such as gold and silver to market. CGrowth Capital will focus on acquiring or "claiming" land assets, while also providing partners and affiliates with management services, capital, contract management and logistical services necessary for the successful execution of mining operations.
Statements about the Company's future expectations and all other statements in this press release other than historical facts, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. The above information contains information relating to the Company that is based on the beliefs of the Company and/or its management as well as assumptions made by and information currently available to the Company or its management. When used in this document, the words "anticipate," "estimate," "expect," "intend," "plans," "projects," and similar expressions, as they relate to the Company or its management, are intended to identify forward-looking statements. Such statements reflect the current view of the Company regarding future events and are subject to certain risks, uncertainties and assumptions, including the risks and uncertainties noted. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended or projected. In each instance, forward-looking information should be considered in light of the accompanying meaningful cautionary statements herein. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, the impact of competitive services and pricing and general economic risks and uncertainties. The Company disclaims any obligation to update or revise any forward-looking statements.