Geo Finance Corporation

October 06, 2010 09:15 ET

Geo Finance Corporation Announces Issuance of Treasury Shares to McDermett Operating Inc. and Sundial Resources Inc. to Acquire Participating Interest in Medlin Field Oil and Gas Property

TORONTO, ONTARIO--(Marketwire - Oct. 6, 2010) - Geo Finance Corporation, (PINK SHEETS:GEFI) of Toronto, Ontario, Canada announces that further to the signing of a binding letter of intent with McDermett Operating Inc. and Sundial Resources Inc. (private Texas corporations) of Graham, Texas U.S.A., announced on August 17, 2010, the Board of Directors has authorized the issuance of 300,000 common shares from its treasury. This issuance is in keeping with the terms and conditions of the initial binding letter of intent to acquire a 34% working interest in the Medlin Field, an estimated 500 acre stacked gas and oil sands owned by McDermett and Sundial in Young County, Texas, U.S.A.

Based on information provided to Geo Finance by the Operator of the field, the Company anticipates production rates after of re-entry and reworking of the subject wells of approximately 20 barrels of oil (bpd) per day on an average of 25 days per month. Cash flow projections have been based on a price of $60 per barrel. Net monthly income from the Company's 34% interest (gross income less royalty, operating costs and state taxes where applicable) is estimated at $7,875 or $94,500 for the first year.

The Board is currently reviewing and doing due diligence on other similar projects for future acquisitions.

About Geo Finance Corporation: Geo Finance Corporation is a Florida company established to develop and invest in energy related projects including waste to energy, geothermal collection fields, natural gas and petroleum production. The administrative office is in Toronto Canada.


Statements in this document regarding the Transaction, the expected timetable for completing the Transaction, benefits and synergies of the Transaction, future opportunities for the company, expectations regarding the value and benefits of the Transaction and any other statements about Geo Finance Corporation's managements' future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable securities laws. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," estimates and similar expressions) should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including, but not limited to: the ability of the parties to consummate the Transaction and satisfy the conditions thereunder; the ability to obtain, the impact of any actions taken by any other party to complicate, delay or prevent the transaction and the ability to produce commercially viable quantities of gas on oil from the Medlin Field. Except as required by applicable law, Geo Finance Corporation disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this document.

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