USR Technology Inc.
OTC Bulletin Board : USRT

USR Technology Inc.

July 17, 2008 12:52 ET

USR Technology Inc. Announces Letter of Intent for Vend In of Certain Assets of Shuayb K. Al Suleimany

HOUSTON, TEXAS--(Marketwire - July 17, 2008) - USR Technology Inc. (OTCBB:USRT), is pleased to announce that it has entered into a Letter of Intent, dated June 30, 2008, for the acquisition of certain assets from Shuayb K. Al Suleimany of Muscat, Oman ("Suleimany").

The assets being acquired from Suleimany comprise a variety of drilling equipment including drill bits, stabilizers, survey equipment, and two wireline trucks including tools and related components located in Muscat, Oman.

The total value of the acquisition has been agreed at US$738,990 and the consideration will be by way of issuance of 738,990 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 Suleimany

The acquisition of these assets will further complement USR Technology's core business of Ultra Short and Short Radius Drilling. The equipment included in this acquisition includes two wireline trucks containing 25,000' of single conductor wireline. This equipment is required when running gyroscopic instruments to orient milling and drilling assemblies. The wireline trucks will also be used to run wellbore navigation tools that will transmit real time inclination and azimuth readings to surface. This data is required for accurate placement of horizontal wellbores and is provided to customers while drilling operations are under way and at the conclusion of drilling operations. Assets such as specialty drilling assemblies, drill bits, power tongs, survey instruments, fishing and milling assemblies are also included in this acquisition.

David LaPrade, President of USR Technology Inc., stated: The acquisition of this equipment further enhances the drilling inventory stock that is required for our USR and SR drilling services. The equipment will be based in our warehouse facility in Muscat, Oman and will be used in services for local operators such as Occidental of Oman and Petroleum Development Oman. I managed drilling operations in Muscat for five years ending in 2006 and look forward to returning to Muscat to help grow this important regional base. Oman's oilfields are on the decline so its operators are ready to employ technologies such as USR that can help arrest this decline. USR wells that were drilled in 2004 have shown no decline in production as of June of 2008. I see Oman as being a major source of revenue for our company.

Shuayb K. Al Suleimany, went on to say: We, along with USR Technology's management, introduced USR drilling to several operators in 2001. Petroleum Development Oman used the technology on approximately 15 wells. Production results were positive and as a result both PDO and Occidental are interested in starting new campaigns consisting of approximately 45 wells beginning late 2008 or early 2009. I look forward to working with USRT's team in continuing to offer this service to our oil and gas customers.

About USR Technology, Inc.

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 Shuayb K. Al Suleimany

Shuayb K. Al Suleimany is a business man from Oman who is presently the CEO of Seven Seas Group which has a turnover of over USD 50M. He is a Business Graduate from Arizona State University and has been in business for the last 24 years. His business ranges from oil & gas, construction, aviation and marine supplies to the various industries in Oman and UAE. He was also one of the promoters of USR drilling in Oman in 2001 and has been a staunch supporter of new technologies being launched into the oil & gas industries.

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 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

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