SAN FRANCISCO, CA--(Marketwired - Mar 12, 2014) - Worthington Energy, Inc. (OTCQB: WGAS) ("Worthington" or the "Company"), an energy company engaged in the acquisition, exploration, development and drilling of oil and natural gas properties, announces that the Company has entered into a Definitive Agreement (the "Agreement") to acquire the oil and gas assets of American Dynamic Resources, Inc. (ADR) and Heavy Oil Technology and Intellectual Property from ADR President and CEO, Mr. Charles Adams on or before April 15, 2014.
Worthington will acquire the assets of ADR consisting of multiple leases in Montgomery, Labette and Wilson Counties in Kansas. The combined leases contain 140 oil wells and 17 gas wells within 3,527 acres, including documented reserves of 1,163,618 barrels of oil and 9.8 BCF of gas. Worthington will pay 35,000,000 shares and $50,000 to ADR for these assets.
Worthington will also acquire ADR's patents on Intellectual Properties covering 3 areas of Enhanced Oil Recovery: Air Lift, Thermal Enhancement and Reservoir Management. These technologies are well suited for the Heavy Oil deposits contained in the Kansas leases being acquired. Worthington will pay Charles Adams (affiliated with ADR) 35,000,000 common shares and $75,000 for these assets (including the associated patents).
Upon closing the agreement, Mr. Adams will become President and Chief Operating Officer of Worthington. In addition, Mr. Adams will be appointed Vice-Chairman.
"I am thrilled to be able to deliver this positive news for Worthington and its valued shareholders," stated Worthington Energy, Inc. Chairman and CEO, Charles F. Volk. "We are excited to move into this shallow Heavy Oil Play in Kansas and look forward to working closely with Mr. Adams."
Worthington engages in the acquisition, exploration, development and drilling of oil and natural gas properties. Worthington is an energy turnaround company whose strategy is to acquire cash flow producing properties with proved and probable reserves, develop the fields by reworking existing wells and drilling new wells. Worthington was founded in 2004 and is based in San Francisco, CA.
Certain statements in this press release regarding strategic plans, expectations and objectives for future operations or results are "forward-looking statements" as defined by the Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements, including the risks discussed in the Company's annual report on Form 10-K and the Company's other filings with the Securities and Exchange Commission. Factors that could cause differences include, but are not limited to, history of losses; speculative nature of oil and natural gas exploration, substantial capital requirements and ability to access additional capital; ability to meet the drilling schedule; changes in tax regulations applicable to the oil and natural gas industry; results of acquisitions; relationships with partners and service providers; ability to acquire additional leasehold interests or other oil and natural gas properties; defects in title to the Company's oil and natural gas interests; ability to manage growth in the Company's business; ability to control properties that the Company does not operate; lack of diversification; competition in the oil and natural gas industry; global financial conditions; oil and natural gas realized prices; ability to market and distribute oil and natural gas produced; seasonal weather conditions; government regulation of the oil and natural gas industry, including potential regulations affecting hydraulic fracturing and environmental regulations such as climate change regulations; uninsured or underinsured risks; and material weakness in internal accounting controls. The forward-looking statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not undertake any obligation to update the forward-looking statements as a result of new information, future events or otherwise.