SOURCE: Gold Coast Mining Corp.

August 06, 2013 14:14 ET

Gold Coast Mining Announces Acquisition of Lease/Working Interest in Oil Field

BOCA RATON, FL--(Marketwired - Aug 6, 2013) - Gold Coast Mining Corp. (OTC Pink: GDSM), is pleased to announce that it has closed an investment in an oil field/well. Details as follows:

  • The operator and developer is Tiger Development LLC which is drilling a 4,740 foot vertical depth well in Section 13-T25N-R6W, Garfield Twp., Kalkaska Co., Michigan. The well is near completion and production/pumping of oil should commence no later than the end of August 2013. The Company has all the engineering and geological reports, as well as daily drill reports which will be posted on its Website once the site is fully developed.

  • The well is situated on over 1,100 acres of land controlled by Tiger Development, in which the Company also has a lease interest. It is reported that Encana, an investment grade oil & gas company owns the property surrounding our land and has several wells producing. Tiger Development's current plan is to drill additional wells on the land, which also include the prolific Collingswood shale, in which the Company can participate.

  • From an economic perspective, the well is projected to produce 50-60 barrels a day. Based on the engineering reports and historic characteristics of the Garfield formation, the well is expected to produce at the same flow rate for 40 years.

  • Given the late stage of well development, the Company was able to secure its interest through an existing large investor, Bubblin Crude Corp., with who Mr. Shea, CEO, has a close relationship. The Company's interest was acquired at Bubblin Crude's cost.

  • Due to the Company's limited capital resources, to date, it has closed a 2% interest in the project with an agreement to increase the interest to 5% by month end. Each percentage of interest cost the Company $10,000.

  • The economic potential is tremendous given the limited investment. Management projects that with at a 5% interest, the monthly net revenues would approximate $6,000. Again, this income stream requires no additional overhead or costs and is projected to run for 40 years.

Mr. Shea stated, "We are very fortunate to be able to participate in this project and have a strong desire to obtain the 5% interest level. While the projected monthly net revenue is only $6,000, one to two more similar investments should put the company in a position of sustainable profitability. This is part of my first step in stabilizing the company and utilizing share issuances only for accretive acquisitions."

Shea continued, "As the first part of the my strategy is underway, Management can now look toward phase two which may include business line diversification and/or acquisition of a larger company via a reverse merger. Obviously, the later is much more challenging and the Company must complete its audit and Form 10 for that to be a viable option. Several opportunities are in different stages of due diligence."

Lastly Shea commented, "If we are fortunate enough to acquire a small portfolio of these well interests, and a capital need arose for a more lucrative venture, I would not be averse to selling the income streams at a reasonable discount to a NPV (net present value)."

The Company will host its quarterly conference call at the end of August at which time a full update will be given, including financing of the well interest, audit, Form 10, etc. Details will be provided shortly.

ABOUT GOLD COAST MINING

Gold Coast Mining Corp plans to pursue growth and enhance shareholder value through acquisition opportunities in and out of the mining industry. There are many lucrative mining projects that are sitting idle due to lack of capital and/or financing direction. Gold Coast will seek to capitalize on these opportunities by securing capital, finance consulting, equipment assistance and other financial assistance to these companies/projects.

Safe Harbor Statement

Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance.

Contact Information

  • Gold Coast Mining Contact:
    Michael Shea
    Phone: 203-210-5614
    Email: michael.shea@gdsmholdings.com
    Twitter: @GoldCoastMining
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