SOURCE: GRIT International, Inc.

GRIT International, Inc.

October 20, 2010 03:00 ET

GRIT International's Texas Petroleum Subsidiary to Go Public With Opening Share Price to Be 0.75EUR Offered to GRIT Shareholders at 0.01EUR per Share Expiring December 31, 2010

GRANDE PRAIRIE, AB--(Marketwire - October 20, 2010) -  GRIT INTERNATIONAL (FRANKFURT: 3GR1) and (XETRA: 3GR1) (PINKSHEETS: GRIG). Recently the company announced how it has entered into discussions with a Texas based company to purchase a large oil and gas field of proven developed and proven undeveloped properties shown to have 10,000,000 barrels. The company has also set a plan in motion to acquire additional properties from smaller producers for the purpose of consolidating these operations.

In order to facilitate this transaction, it is important for GRIT International to organize and create a fully listed subsidiary on the Frankfurt Stock Exchange. This subsidiary named TEXAS PETROLEUM Corp. is being created for the benefit of all shareholders of GRIT. Therefore, as of the date December 31st 2010 (record date), all shareholders of record will be entitled to receive one new subsidiary share for every share of GRIT International that is held (1:1). These new subsidiary shares have to be purchased from the company for just 0.01EUR per share. The company expects to issue 80 million shares of this new subsidiary, the right to purchase subsidiary shares at 0.01EUR per share will be non-transferable and is available only to GRIT shareholders as of the record date. Payment for the purchase of such shares must be received by the company on or before January 31st 2011 (payment date) and the company will issue and deliver all new shares to all participating GRIT shareholders by February 28th 2011 (delivery date) or earlier. GRIT Management expects the new listing to take effect and begin trading no later than by January 31st 2011.

The company has calculated the asset being purchased and its proven developed and proven undeveloped reserves of 10,000,000 barrels along with the current price of oil at $83 USD per barrel. Based on this information, the company estimates Euro 7.50 per share asset value based on a currency exchange rate of Euro 1.39. The company has decided to discount this per share amount by 90% for an opening price of Euro 0.75 per share on the first day of trading. This final calculation will be in-line with regulatory and accounting principles and rules.

Virtually all oil and gas service companies, project managers, operators and exploration companies are over-booked, or have significant projects on the table and ready for production. This current boom has been caused by high energy prices. The price of oil depends upon many factors, some of which some are political and others are purely a function of consumer demand. Weather and economics also make accurate predictions of oil prices difficult if not impossible. However the consensus among the experts is that the price is expected to remain high for the foreseeable future. Therefore it is likely that the petroleum industry should expect strong revenues and record profits well into the future.

The Company's projects are located primarily in North America, but are not limited to these areas as new projects are reviewed weekly for inclusion into the Petroleum Business Plan. TEXAS PETROLEUM will focus on properties and companies that demonstrate the highest potential for success. TEXAS PETROLEUM has partnered with established professionals in the oil and gas sector, having experience in operations and management. All Petroleum projects have either production revenue; or service revenues where possible, properties will have all seismic information for examination including historical logs and all investments into producing properties will be thoroughly inspected and researched.

TEXAS PETROLEUM'S goal is to invest and take a working interest in oil and gas properties. These projects will be purchased directly from producers and in some cases will be selected from auctions which are held worldwide. Participation will be based on the required purchase price and of course the quality of the project. Ownership will range from a 1% Working Interest (WI) to as much as 100% (WI). The required amount of financing is $10,000,000. TEXAS PETROLEUM will in-turn, purchase its interests in an estimated 300 medium and small producing wells. The company will then have significant cash flow going into its second year. During this period TEXAS PETROLEUM will continue to increase its portfolio size, combined, net earnings from all projects could very well exceed $9,000,000 in total or $0.12 per TEXAS PETROLEUM share (which constitutes besides the aforementioned asset value of EUR 0.75 per share also considerable earnings value of $1.80 per share based on a regular 15 times earnings ratio). Additional projects will be purchased during the second year and TEXAS PETROLEUM plans to increase its portfolio to include interest in up to 500 wells over the next two years.

There are literally thousands of oil re-work projects in North America and the company intends to take advantage of this. In Canada alone, over 100 new wells are spud each day. The real opportunity is in the consolidation of smaller and mid-size players who will benefit from a structured exit strategy and economies of scale that a large producer can offer. This is why TEXAS PETROLEUM has decided to develop this tried and true business model and we plan to grow primarily by acquisition.

Further, Grit International will arrange for a $10,000,000 Euro financing with the help of LeadDog Capital LLC for the subsidiary which will be used to develop all new projects and to assist with acquisitions. The new website for this division is still under construction, so please watch for new information regarding the launching of the site.

GRIT International is a Canadian based company registered in the State of Nevada, US; -Diversified Industrial Services Company, offering Support Services, Utilities, Oil & Gas and Mineral holdings. The businesses that make up GRIT INTL integrate amongst each other providing a present revenue from the energy industry and also seeks out Environmentally Sustainable solutions in nuclear energy, renewable resources in bio-waste and other alternative fuels available at present time. GRIT foresees expanding its divisions from an international to that of a Global services provider. For more information please visit the company's website at

LeadDog Capital LLC
LeadDog Capital L.P. (the "Fund") is managed by its General Partner, LeadDog Capital Markets, LLC. The LeadDog Management Team has significant experience in the capital markets involving private placements, reverse mergers, alternative public offerings, asset based financing and bridge loan financing. For more information please visit the website

Safe Harbor Statement; under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.

Contact Information

  • Contact:
    GRIT International Inc.,
    Investors Relations
    P : 780.513.1125
    F : 780.814.5584
    A : Suite 201, 9914 - 109th Avenue, Grande Prairie, AB, T8V 1R7

    Investor Relations - German
    Mr. James Stewart
    P: 0 2161 49694870