Ferndale, WA (PRWEB) October 30, 2008
1st NRG Corp (OTC-BB: FNRC) is pleased to announce that it has closed a private placement in the amount of $5 million dollars. The private placement was completed with a group of five (5) institutional, accredited investors.
The private placement consisted of 500 units priced at $10,000 per unit for an aggregate of five million dollars invested into the Company. Each unit consisted of 12,998 shares of the Company's common stock, and 21,682 warrants exercisable at $1.24 per share. The warrants expire thirty months from the date of the issuance. Fully exercised, the warrants would result in an additional $13,442,840 being invested into the company. The purchase funds for the units are to be released to the Company in accordance with the terms and conditions of the use of proceeds agreement following the completion of an appropriate registration statement to register the shares and warrants issued in connection with the warrants offering.
A portion of these funds have been set aside for drilling on the Guatemala project. The company believes this funding will provide all of the necessary capital to drill the 2 wells which are committed to. The Guatemala project is a proven structure with existing wells.
The LOI signed between 1st NRG and TrueStar Petroleum Corporation with regard to the Guatemala project, calls for 1st NRG to invest $650,000 for licensing and changeover and to invest up to $12 million for the drilling and completion of two wells in the development area. 1st NRG will receive 97% of the revenue from the production area until its initial capital is recovered. Following the recovery of the initial capital by 1st NRG, the revenue will be split 80% to 1st NRG and 20% to TrueStar. The final terms and condition of the agreement are subject to the signing of a Definitive Agreement between TrueStar and 1st NRG.
The property is 554,000 acres. A discovery well was drilled that produced approximately 145,000 barrels. A second confirmation well produced approximately 85,000 barrels. Due to an unsettled civil war at the time and low oil prices, the field was never developed. In addition, recent seismic data have identified two additional structures and one strong lead. This project would consist of developing the known discovery and explore the other structures. Total potential reserves are estimated in the range of 50 to 100 million barrels. Other licenses in the area are possibly available. This project could be developed quickly with production in less than one year.
About 1st NRG
1st NRG, Corp. is a development stage oil and gas company focused on acquiring, developing and operating petroleum based facilities. The management of 1st NRG Corp. intends to focus on acquiring, developing and operating oil and natural gas properties. This will allow the company and its shareholders to take advantage of management's extensive experience in the industry.
Management believes certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are made on the basis of management's views and assumptions regarding future events and business performance as of the time the statements are made. Actual results may differ from those expressed or implied. Such differences may result from actions taken by the company prior to its current fiscal year end, as well as from developments beyond the company's control, including changes in global economic conditions that may, among other things, affect the performance of the company's anticipated acquisitions or future business. In addition, changes in domestic competitive and economic conditions may also affect performance of all significant company businesses.
For Additional Information:
Please visit the company's web site: 1st NRG Website
Or contact 1st NRG at 1-877-840-2053