SOURCE: Energetics Holdings, Inc.

November 21, 2007 08:00 ET

Energetics Holdings, Inc. Corporate Overview

FORT WORTH, TX--(Marketwire - November 21, 2007) - Energetics Holdings, Inc. (PINKSHEETS: ENRH) is pleased to provide the following updated corporate overview.

Energetics Holdings, Inc. is a company engaged in the development and exploitation of gas and petroleum reserves throughout the United States. It is clear that global use of petroleum has increased significantly over the past several years. This demand has driven oil and natural gas prices to record highs. Our mission is to establish a presence in the Oil and Gas Drilling and Exploration industry by building a diversified portfolio of highly productive oil and natural gas assets in the United States, both on land and in the coastal Gulf of Mexico. We will build our business by either directly owning the producing assets via acquisition or entering into business partnerships with other successful Oil and Gas companies.

Our tactical plan is to purchase and develop properties with the potential for generating positive cash flow within 3-6 months of acquisition. This will allow us to build sufficient financial resources which can be used to conduct developmental and exploratory drilling projects. In fact, we have already identified several firms and/or leases which can be acquired and would immediately add to revenues and earnings. In addition, we are looking to make strategic acquisitions that would enable us to add diversification to our business base in the Energy Services sector in order to become a fully operable integrated oil and gas company. This is a major goal for our company. Such acquisitions would allow us to tie in our core production and drilling business with distribution capabilities. Due to a shortage of oil services workforce and the expectation of a continuing shortage, strategic acquisitions in this area would add tremendous value to our company and shareholders. Lastly, we will outsource functional services beyond our core competence and grow or acquire businesses in closely related areas that lead to economies of scale.

A window of opportunity has been created in the United States, now, due to the overwhelming number of small firms and individuals who own properties rich in natural resources, but lack the financial resources to continue as a going concern. The demographics of such individuals who own property rich in natural resources are, at retirement age, effectively creating an oversupply of small properties across the United States. Yet, many such smaller operations and individuals are looking to monetize their properties as a strategy for providing retirement income, because they do not want to take on the incumbent risks of such exploration and development. In addition, energy asset ownership in the mature producing areas of the U.S. is highly fragmented, with leases and production ranging from major fields to very small fields, some containing only one well. This has created a fragmented market, as many of the multi-national oil firms aren't interested in purchasing such sites because it makes no economic sense given their size. Therefore, we believe that an opportunity exists due to this over-supply, for purchasing leases and exploiting properties rich in natural resources, such as oil and natural gas, at reasonable prices. In fact, we believe that owners of such properties are seeking liquidity, which we can provide, in exchange for a discount on what the property may otherwise be worth.

Energetics Holdings Inc. ("ENRH") was incorporated in the state of Delaware in 1999, with its core operations initiated in Q3 of 2007. We will explore in high-potential proven basins to achieve our financial goals. In addition, we will seek innovative oil and natural gas alternatives, such as bio-diesel, given the high cost of fuel. At today's prices, virtually all forms of fuel are economically viable and represent significant opportunities for those companies willing to seize them. We chose to grow our portfolio of business in the United States and the coastal Gulf of Mexico for the following reasons:

--  Domestic production is highly regulated and intentionally kept scarce.
--  The U.S. Government is always the buyer of last resort for its
    strategic petroleum reserves.
--  Ownership of domestic assets is an excellent hedge against inflation
    and any potential devaluation of the U.S. dollar.
--  Our legal system provides significant protection of property rights.
--  The U.S. energy policy is currently oriented to minimize dependence on
    foreign oil.
--  There is a significant demand by foreigners to physically own
    producing assets in the United States.

It is for these reasons that we believe that a portfolio of small to mid-size leases, within the United States, will see faster growth than those outside the United States.

ENRH's management team has extensive experience in acquiring and developing such properties.

In order to raise the capital to purchase such leases and/or companies, ENRH is taking a twofold approach. Recently, it was announced that the Company completed a reverse merger into a publicly traded pink sheet shell company. Our stock symbol is (PINKSHEETS: ENRH). There are approximately 3.85 MM shares outstanding, and the current market capitalization is between 4-8 MM dollars. Therefore, one method for purchasing qualified assets, as described above, will be to issue restricted stock. By issuing restricted stock, the owners cannot convert into free trading stock for 2 years, so in reality, there is no current dilution. In addition, because many of the business ventures ENRH is considering are with companies with few financial resources, they are more apt to accept restricted stock. ENRH can then retain key employees who would then be very motivated to harness the energy resources because they have an ownership interest.

Secondly, as ENRH builds its asset base, it will be in an excellent position to use asset base lenders, such as commercial banks and hedge funds to borrow against the collateral on the balance sheet. ENRH is already in advanced discussions with several such firms.

We believe that this strategy is the recipe for success. In fact, our business plan is similar to that of Arena Resources, a $1.2 Billion company.

In 2007, we purchased our first lease, in a proven field in Caddo Parish, Louisiana, with 370 acres and recoverable oil reserves in excess of 900,000 barrels. In addition, during Q4 of 2007, we acquired a firm which has a current R-4 Classification and tier II approval to operate oil, gas and disposal wells in Louisiana. This will allow us to begin drilling for oil, in this proven field, in Q2 of 2008. We project that we will be able to produce a modest 900 barrels of oil per month, on the Caddo Parish site, with a $1.2 million Q2 2008 drill campaign. We then project that we will have sufficient capital to finish our 2008 drilling campaign which we forecast to cost an additional $3.6 MM, but will give us the ability to be in FULL production by the end of 2008. Our projections indicate that we will be able to produce 3600 barrels of oil per month by the end of calendar year 2008.

For more information visit:

About Energetics Holdings, Inc.

Energetics Holdings, Inc. is an energy resource company that is committed to evaluating energy resource properties, the acquisition of existing production and subsequently, drilling oil and natural gas reserves in the mid-continent and gulf coast regions of the continental United States. For more information visit:

Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "forecasts," "potential," or "continue," or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The company has no obligation to update these forward-looking statements.

Contact Information

  • Contact:
    Investor Relations
    Tom Kudlawiec