USR Technology Inc.
OTC Bulletin Board : USRT

USR Technology Inc.

July 07, 2008 14:15 ET

USR Technology Inc. Announces Letter of Intent for Vend In of Assets by Well Flow Drilling Services Valued at $5 Million

HOUSTON, TEXAS--(Marketwire - July 7, 2008) - USR Technology Inc. (OTCBB:USRT), is pleased to announce that it has entered into a Letter of Intent, dated June 26, 2008 with Well Flow International, WLL, for the acquisition of certain assets from its subsidiary Well Flow Drilling Services, WLL. Well Flow Drilling Services is a private company registered in Bahrain which has been involved in the drilling and completion of Ultra-Short Radius horizontal wells for oil and gas operators.

The assets being acquired from Well-Flow are specialized drilling and surveying equipment that is used in the drilling of Ultra-Short Radius (USR) wells including drill bits, titanium and steel drill pipe, fishing tools, stabilizers, wellbore navigation electronics, mud motors and wireline tools.

The total value of the acquisition has been agreed at US$5 million and the consideration will be by way of issuance of 5,000,000 restricted shares of our company, at a deemed value of $1.00 per share. The acquisition is subject to completion of a definitive agreement.

About the Acquisition from Well Flow

This is a significant acquisition of key assets required for the drilling of USR wells, which reduces the risk of a potential revenue deferral due to the long lead times associated with the manufacturing and delivery of equipment. In addition, all of the key personnel formerly with Well Flow Drilling Services have joined USR Technology, Inc., and this combination of drilling assets and experienced personnel gives our company a solid platform to launch its USR drilling business and close ongoing negotiations for significant USR drilling contracts.

J. David LaPrade, President of USR Technology Inc., stated: "The assets of Well Flow will enable us to advance the timing of contract signings and our revenue stream. The equipment is currently positioned in regions of strategic importance to our business development efforts and this will further reduce the time required to mobilize equipment to service our first contracts. I am very pleased with the company's progress in acquiring the equipment and personnel necessary to meet our near term requirements."

About USR Technology

The Company is involved in the oil and gas services sector, specifically the provision of directional drilling services to international oil and gas companies, with emphasis on Ultra-Short Radius (USR), Short Radius (SR) and slim hole applications. The company will deploy proprietary well intervention technologies, including Rotary Steerable Tools and USR Mud Motors that are specifically designed to exploit remaining reserves, increase production from marginal wells, restore production from shut in wells and reduce water production. From its head office in Houston, Texas the company is currently in the process of establishing branch offices in Bahrain, Oman, India and Malaysia.

A change of name from Heritage Explorations Inc. became effective with the Over-the-Counter Bulletin Board at the opening for trading on June 26, 2008 under the new stock symbol "USRT".

J. David LaPrade, President

USR Technology Inc.

Forward-Looking Statements

This news release contains "forward-looking statements", as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. The user can identify these forward-looking statements by forward-looking words such as "may," "will," "expect," "potential," "anticipate," "forecast," "believe," "estimate," "project," "plan," "continue" or similar words. The user should read statements that contain these words carefully because they discuss future expectations, contain projections of future results of operations or of financial condition, or state other forward-looking information. Forward-looking statements include, but are not limited to, the acquisition of the equipment necessary for the provision of directional drilling services to oil and gas companies, the acquisition and employment of well intervention technologies, including USR and SR applications or that such technologies will increase or restore production and reduce water production in any particular application, and in general any statements regarding potential acquisitions, development programs, and future plans and objectives of USR Technology. Actual results relating to, among other things, pending acquisitions, results of the drilling technologies, capital costs and production costs could differ materially from those currently anticipated in such statements.

Factors affecting forward-looking statements include: the speculative nature of oil and gas exploration and development activities; changes in reserve estimates; the acquisition and application of the drilling technology to be acquired by USR Technology; changes in the operating costs; changes in economic conditions and conditions in the resource, foreign exchange and other financial markets; changes of the interest rates on borrowings; hedging activities; changes in the prices for hydro carbons that USR Technology may assist companies with producing; changes in the investments and exploration expenditure levels; litigation; legislation; environmental, judicial, regulatory, political and competitive developments in areas in which USR Technology operates; technological, mechanical and operational difficulties encountered in connection with USR Technology's drilling activities; and labour relation matters and costs. The user should refer to the risk disclosures set out in the periodic reports and other disclosure documents filed by USR Technology from time to time with the Securities and Exchange Commission and other regulatory authorities.

Contact Information

  • For Investor Relations Contact:
    Capital Group Communications
    Mark Bernhard
    (415) 332-7200