USR Technology Inc.
OTC Bulletin Board : USRT

USR Technology Inc.

July 10, 2008 09:00 ET

USR Technology Inc. Announces Letter of Intent for Vend In of Certain Assets of Hydrocarbon Resources Development Company

HOUSTON, TEXAS--(Marketwire - July 10, 2008) - USR Technology Inc. (OTCBB:USRT), is pleased to announce that it has entered into a Letter of Intent, dated June 27, 2008, for the acquisition of certain assets from Hydrocarbon Resources Development Co. (P) Ltd. of Mumbai, India ("HRD").

The assets being acquired from HRD comprise:

- a variety of oilfield related service equipment including portable well testing units and mud logging units, and

- a precision manufacturing and machining facility located in Mumbai, India, with its contents including precision machining, drilling and welding equipment; grinding and cutting equipment; precision testing and measuring equipment; and raw material.

The total value of the acquisition has been agreed at US$1,127,342 and the consideration will be by way of issuance of 1,127,342 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 HRD

The acquisition of these assets will accelerate the company's objective of providing additional services that complement USRT's core business of Ultra Short and Short Radius Drilling. The well testing units will be used to confirm hydrocarbon production increases following the drilling of a horizontal drainhole. The mud logging units will be used to monitor drilling parameters and conditions and mud properties, and evaluate the presence of hydrocarbons in samples of drill cuttings retrieved at surface as well as gas volumes and analysis from chromatograph. The information from both the well testing units and mud logging units will be used to provide critical evaluation data to oil and gas operators. In the precision machining facility we will manufacture our own specialty equipment and a variety of related equipment including small tubulars and downhole accessories for our established customer base. Producing such items in-house will offer significant cost and time savings, and will create revenue from third party sales. All these services will add to the overall oilfield services revenue stream.

David LaPrade, President of USR Technology Inc., stated: This acquisition will provide us with additional equipment to expand our services portfolio that we offer our customers. These services are critical to drilling and completion operations, but are usually provided by third parties. These services will now be offered by USRT and generate additional revenues to the company. Our relationship with HRD goes back approximately five years so we know the caliber of its people and we look forward to expanding our operational base in India.

S.R. Das, CEO of HRD, went on to say: We are extremely excited about working with USRT. India has huge potential for USR and SR drilling. We have been in business more than 20 years and have a well established customer base of oil and gas companies throughout India who are eager to utilize USRT services. We also have a very good working relationship that we have established with the management and employees of USRT over the past five years. HRD has worked hand-in-hand with this team in the past to promote and apply their technology in India and Indonesia. In India we have achieved some spectacular production increases from marginal wells.

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.

About Hydrocarbon Resources Development Co. (P) Ltd.

HRD is a leading oil and gas company in India. It is involved in several sectors of the industry including exploration and production, reservoir modeling, field development, construction, operation and maintenance of early production facilities and pipelines, project management services, pipeline pigging services, and manufacturing of wireline and well completion products. HRD has been offering high quality services and products to clients in India and abroad since 1987.

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 labor 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

  • USR Technology Inc.
    J. David LaPrade
    (415) 332-7200
    For Investor Relations Contact:
    Capital Group Communications
    Mark Bernhard
    (415) 332-7200