SOURCE: Lexico Resources International, Inc.
ROOSEVELT, UT--(Marketwire - Nov 12, 2012) - Lexico Resources International, Inc. (PINKSHEETS: LXXI) announced the completion of its Alliance and Operating Agreement with two industry pros, Craig K. Phillips and C. Sherman Phillips. This is a major milestone marking a huge change for Lexico with numerous benefits, but most important is the entry to the water disposal business. Water disposal has always been a component of the oil business. In fact, as a well ages, the ratio of water to oil increases, and many wells often last for 40 years, or more.
Salient features of the Alliance.
- Significant equity investment in Lexico by Craig K. Phillips and C. Sherman Phillips, through their company, Rush Oil and Gas, Inc., which will service as "operator" for Lexico projects.
- Rush contributed two wellbores in Duchesne County, Utah, a strong oil production region in Northeastern Utah. The contribution of the wellbores will represent huge savings.
- Rush also contributed 200,000 shares of common stock in Hinto Energy, Inc.
- Minimal dilution - Lexico issued 6,693,872 restricted shares of its common stock to Rush Oil and Gas, Inc., which represents over a 36% equity position in Lexico.
- Craig K. Phillips and C. Sherman Phillips joined the Board of Directors and Craig K. Phillips now serves as our Secretary and Treasurer.
- Craig K. Phillips and C. Sherman Phillips also have prior experience in operating a water disposal business in the mid-nineties.
"Lexico has arrived as an oil and gas company, with an important division focused on the water disposal business," reported Jeff Krupka, our President.
Mr. Krupka went on to say, "During the First Quarter of 2013, we will have completed the transfer of operations to Utah, and will have continued our audit and legal project with the goal of having two years audited financials in our SEC filings."
To better disseminate our endeavors, we have commenced an investor relations campaign with The Cervelle Group LLC of Orlando, Florida.
Be sure to register on our new website under development www.LexicoIntl.com and receive up to the minute press releases.
Notice Regarding Forward-Looking Statements
This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Investors are cautioned that such forward-looking statements involve risks and uncertainties, which include among others, the inherent uncertainties associated with petroleum exploration and development stage exploration companies including without limitation, other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.