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NEWS - CNSV Acquires 100% of Oil & Gas Rights on 10,000 Acres in east Kentucky
Sep 26, 2008 04:36AM
CNSV ACQUIRES 100% OF OIL & GAS RIGHTS ON 10,000 ACRES IN EASTERN KENTUCKY FOR $200,000 IN CASH AND $800,000 IN COMMON STOCK (415,584 SHARES) VALUED AT $1.92 PER SHARE
Henderson, NV - September 26, 2008 - Consolidation Services, Inc., (“CNSV” or the “Company”) (OTCBB:CNSV), which is engaged in acquiring land for organic farming operations and developing unproven energy resources on some of its acquired properties, announces the closing on an agreement to acquire 100% of the oil and natural gas rights on approximately 10,000 acres in eastern Kentucky from Eastern Kentucky Land Corporation (“EK”), for the total consideration of $1 million. CNSV used a combination of $200,000 cash and $800,000 (415,584 shares valued at $1.925 per share) of restricted common stock to close the transaction. The shares will be sold subject to a lock-up/leak out agreement, with weekly sales of up to 7,992 shares commencing on April 1, 2009 and for a period of fifty-two weeks thereafter on a non-cumulative basis. The oil and gas rights, which management believes provide the potential for approximately 300 - 400 natural gas well drilling sites, are located on the same acreage that the Company recently acquired an interest in through its purchase of a fifty percent (50%) equity ownership interest in Buckhorn Resources, LLC, the owner of such land, including the rights to any coal resources that may exist on or under such land.
“Utilizing a majority of restricted common shares and a smaller amount of cash for the acquisition of 100% of the oil and natural gas rights on this sizable tract of land enables CNSV to continue to accelerate its strategic objective to generate cash flow from the development of unproven energy resources believed to be situated on the approximately 10,000 acres, while allowing the sellers the potential to realize greater value from the sale of the assets in the event of future increases in value of the stock consideration component received. We believe the transaction will provide long-term benefits to our shareholders,” said Dr. Johnny R. Thomas, President/CEO of CNSV.
CNSV is engaged in acquiring land for organic certification and grazing of beef, dairy and wild game on grass fed pastures. Much of these acquired lands will also be utilized in connection with the Company’s energy development plans in the near-term, prior to reclamation and subsequent use in connection with CNSV’s planned organic production activities. CNSV is also seeking to acquire organic and natural food companies in the food services industry. The CNSV business model is unique because it focuses on acquiring land to produce both food and energy. The Company intends to make energy resource recovery and organic/natural farming work synergistically because modern recovery methods not only avoid damage to the land, but also make the land more conducive to grazing by filing in the valleys and leveling the peaks, as well as enhancing arability.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this press release are forward-looking statements. Without limiting the foregoing, the words “believe,” “anticipate,” “plan,” “expect,” “seek,” “potential,” “estimate,” and similar expressions are intended to identify forward looking statements. These statements relate to future events or to the Company’s future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond the Company’s control which could, and likely will, materially affect actual results, levels of activity, performance or achievements.
Any forward-looking statement reflects the Company’s current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. Such risks, uncertainties and other factors which could impact the Company and the forward-looking statements contained herein are included in the Company’s filings with the Securities and Exchange Commission. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.