SOURCE: Viking Investments Group, Inc.
SEVERNA PARK, MD--(Marketwired - Mar 25, 2014) - Viking Investments Group, Inc. ("Viking") (OTCQB: VKIN) is pleased to announced it has entered into an agreement with Tanager Energy Inc. ("Tanager") (TSX Venture Exchange, Canada: TAN) pursuant to which Viking has been engaged to, among other things, assist Tanager with identifying and solidifying strategic alliances with reputable and mature oil and gas companies in Alberta, Canada, or acquiring existing revenue-producing assets from such companies. More about Tanager can be found at http://tanagerenergy.com/
Tanager recently entered into an agreement to purchase oil and gas assets in central Alberta producing an equivalent of 160 barrels oil per day (90% oil) for approximately $9,000,000, and to purchase a 100% interest in the Joffre D-3 Oil Unit No 1, which consists of 4 suspended oil wells and 1 water injection well. This unit previously produced over 6 million barrels of oil. Tanager plans to re-enter the suspended oil wells sequentially and place them back in production. The first well would be re-entered and placed in production within 30 days, and the next two wells within 3 months thereafter. An independent evaluation by AJM/Deloitte shows proved and probable reserves of 736,200 barrels of oil equivalent remaining worth $7,056,900 for the Unit, discounted at 10%.
Tanager projects it will produce 2000 barrels of oil per day by 2015. The new deal will immediately add 160 barrels of oil equivalent (90% oil) per day of production from 3 producing properties in an acreage package of over 2900 acres. Within these properties additional probable reserves are available for additional wells and production optimization to increase the daily production. Tanager's management continues to have discussions with other groups to add significant production and reserves.
Tanager activities concentrate on the acquisition, development and production of petroleum and natural gas. Currently, Tanager is focused on opportunities such as suspended wells, by-passed pay zones, enhanced oil recovery, with potential for further production with the appropriate technologies.
Viking, in its capacity as advisor to Tanager, will play a key role in structuring and finalizing qualified acquisitions and related financing transactions.
Viking, as advisor, intends to hold an equity position in Tanager, and participate in debt financings.
Viking is not an investment company, as defined by the Investment Company Act of 1940.
As indicated in its transition announcement on February 28, 2014, Viking aims to provide professional advisory and consulting services to established companies in the United States and Canada with superior management and positive cash flow, but in need of specific expertise to advance their particular business plan.
Viking will file an 8-K with respect to the foregoing in compliance with SEC regulations.
Safe Harbor Statement
This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company's financing plans; (ii) trends affecting the company's financial condition or results of operations; (iii) the company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk disclosed in the company's Forms 10-K and 10-Q filed with the SEC.