THE VILLAGES, FL--(Marketwired - Apr 16, 2014) - Great Plains Holdings, Inc. (OTCQB: GTPH) today announces that its wholly owned subsidiary, Ashland Holdings, LLC, has made a private placement investment in TexStar -Preferred Partner Joint Venture III, LP ("TexStar") related to a 150-acre lease with nearly 3 million barrels of estimated recoverable oil reserves. In accordance with the private placement memorandum ("PPM") and subscription agreement, Ashland Holdings, LLC will receive income based on net revenue interest on the lease.
Exploration Geologist John Sobehrad has estimated the recoverable oil reserves for the Engleke lease, Luling-Branyon Field, located in Guadalupe County, Texas, at 2,990,000 barrels based on employing "Enhanced Oil Recovery" (EOR) techniques. Based on the April 11, 2014, oil spot price of $103.40, independent calculations show the potential value of the 2,990,000 barrels of estimated reserves for the Engleke Lease is about $309,166,000. Approximately 14 oil wells are producing on the Engleke lease. TexStar indicates that once the enhanced oil recovery techniques are implemented, output per well is expected to be enhanced.
"I am proud of the rapid expansion of Great Plains in the first quarter of 2014, and am honored to be a part of the vision and see it all come together. Our small but dedicated and forward-thinking staff is working around the clock to increase both company and shareholder value," said Great Plains President Denis Espinoza. "Today's announcement demonstrates our ability to establish and carry-out our aggressive expansion strategy."
About Great Plains Holdings, Inc.
Great Plains Holdings operates through two wholly owned subsidiaries: Ashland Holdings, LLC, focused on the real estate sector; and LiL Marc, Inc., maker of the "LiL Marc" training urinal for toddler boys. This diversification model enables Great Plains to achieve multiple revenue streams and consistently increase hard assets.
Ashland Holdings, LLC is engaged in the acquisition and operation of commercial real estate, including, but not limited to, self-storage facilities, apartment buildings, manufactured housing communities for senior citizens, and other income-producing properties. The subsidiary's current portfolio includes a 1,400-square-foot corporate office building; an 800-square-foot warehouse for LiL Marc operations; and two adjacent parcels of land, one of which includes a manufactured home that is rented out for additional income. Ashland Holdings and LiL Marc plan to occupy one or more of the five office spaces located in the corporate office building to accommodate expected expansion. The remaining vacant offices may be leased to tenants to create a source of revenue.
LiL Marc, Inc. is Great Plains' principal business activity. Founded in 1999, the subsidiary engages in the manufacturing and marketing of training urinals for boys in the United States. The LiL Marc boys potty training urinal looks like the full-sized urinals found in public restrooms, but are manufactured on a smaller scale in proportion to the smaller size of toddlers in training. In conjunction with the roll-out of an aggressive marketing campaign for the LiL Marc product, Great Plains' management team is building a client list of retailers with brick and mortar stores and other consumer outlets to participate in the broader retail market. With advertising strategies in place, management envisions growth and widespread distribution of the LiL Marc training urinal.
Great Plains also intends to purchase privately-owned profitable businesses owned by baby boomers looking to retire. As the company continues to execute its expansion strategy and add additional subsidiaries, all potential purchases will be reviewed by management to ensure they meet very stringent requirements.
For more information, visit www.gtph.com
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