Paradigm Oil & Gas, Inc.
OTC Bulletin Board : PDGO

Paradigm Oil & Gas, Inc.

December 14, 2011 09:01 ET

Paradigm Oil and Gas Inc. (PDGO) Enters into Purchase Agreement to Acquire the Oil Interests on 2,200 Acres in East Texas with Current Oil Production of 3,000 Barrels per Month

GUN BARREL CITY, TEXAS--(Marketwire - Dec. 14, 2011) - Paradigm Oil and Gas Inc. (OTCBB:PDGO) is pleased to announce that the Company has entered into a purchase agreement to acquire the oil interests on 2,200 acres located in east Texas that is currently producing 3,000 barrels of oil per month. This production today would represent approximately a USD 150,000 in monthly net cash flow to the Company.

The property consists of 40 producing wells and 200 previously producing wells. An additional 100 wells can be drilled on the property. The Company plans to rework the existing non producing wells to bring them back to a producing state to increase production.

Under the terms of the agreement the seller is to also provide a current Engineering and Geological reserve report, results of which the Company will report on when received. The agreed to purchase price is set at USD 8,500,000 and is to be settled by way of cash or at the buyers discretion, 60% in cash and 40% financed by the seller. The purchase is to close by January 28, 2012 and is subject to continuing due diligence by the Company and approval of financing to be provided by the Investor party the Company previously entered into a Securities Purchase Agreement with and announced on December 1, 2011.

About Paradigm Oil and Gas Inc.

Paradigm Oil and Gas Inc. (OTCBB:PDGO) identifies and acquires energy properties with previously discovered known oil and gas reserves that have not either been fully produced from, or fully developed and defined. Utilizing new technologies like the Transportable Enhanced Oil Recovery Platform, Paradigm expects to generate profit from these previously producing wells. The company has acquired properties covering 1,148 acres all located in the State of Texas, USA. Combined there are a total of 23 existing previously producing wells and available spacing to support the drilling of approximately 30 new wells in the 3,800' to 9,000' range and approximately 100 new wells in the 800' to 1,800' range. For more information about Paradigm Oil & Gas, visit the website at www.ParadigmOilInc.com.

About the Transportable Enhanced Oil Recovery Platform (T-EOR)

The T-EOR Platform, a new and innovative industry oil production system, is a turnkey integrated and portable oil recovery platform that can be deployed quickly and economically to recover oil from previously producing oil wells with known oil reserves that have not been fully developed.

The T-EOR Platform is designed to gather oil production from non producing existing wells on a rotating daily/weekly basis to determine their natural flow rate. Wells that warrant a permanent infrastructure would then be equipped accordingly. Depending on each situation and level of effort and investment, Paradigm is expected to retain anywhere from 50-80% of the net revenue from the resulting production. The company has identified over 6,000 orphaned wells in the State of Texas alone that are potential oil producing candidates for the T-EOR Platform.

Safe Harbor

This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Paradigm Oil and Gas Inc. with members of its management team as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

Contact Information

  • Paradigm Oil and Gas Inc.
    Terry Rutter
    (903) 880-1161
    tjr.paradigmoilinc@gmail.com

    Paradigm Oil and Gas Inc.
    1307 W Main St Ste. 247B
    Gun Barrel City, Texas 75156