American Marconi Wireless News - South Plains Petroleum, Inc. Accepts Metawells Oil and Gas, Inc. Merger Offer

Joe D'Amico, Chairman and CEO of South Plains Petroleum, Inc., (www.southplainspetroleuminc.com) who recently joined the Board of Metawells, reported that the committee of independent South Plains' Directors appointed to review the draft combination agreement gave a compelling report on the benefits of the combination at their regularly scheduled Board meeting on Tuesday, February 4^th, and the Directors gave their 100% assent to completing the contemplated transaction as soon as possible.

The transaction will consist of an exchange of Metawell's shares 1.5 to 1 for South Plains' shares, simultaneously with an uplist of the combined Companies to NASDAQ, accompanied by a name change to South Plains Petroleum and a trading symbol change. Minimum initial share price for NASDAQ qualification is $4.00.

South Plains' by-laws contain an annual dividend provision based on the price of oil over $60 and gas over $3 at which time the Company escrows 5% of the price it receives for dividends to shareholders.

South Plains has multiple properties in both the Eastern Permian Basin of Texas and onshore Louisiana near the Gulf with significant proven oil and gas reserves awaiting development.

The most exciting feature of their main oilfield, centered on the Swenson Ranch north of Abilene, TX, is that the areas of pay are less than 3,000 feet deep and have already produced over 2.6 million barrels of oil. South Plains' in-house and third-party estimates of the Company's over 5 square miles of contiguous leases producing, proved and probable reserves of 2.25 million to 2.5 million barrels of oil recoverable with a PV10 in excess of $27 million, exclusive of several pays that have produced on the property but were not evaluated. PV10 is the present value of future cash flows discounted by 10%.

On the Company's contiguous Welch lease which covers the same oil field there is an additional 800,000 estimated, recoverable barrels of oil with an additional PV10 of $20 million. These combined leases have approximately 45 development drill sites.

South of Abilene the Company has another proven field in the same type of reservoir at similar depth supporting 8 drill sites proven and probable reserves of 400,000 barrels of oil recoverable with a PV10 of $10 million.

The South Plains Louisiana properties are much deeper and are high pressure wells. Wells the Company owns and some they are targeting contain an estimated 18+ Billion Cubic Feet (BCF) of natural gas and 1.8million barrels of oil recoverable with an estimated PV10 of $35+ million.

The combined, conservative minimum value of these properties is $92,000,000.

About Metawells Oil and Gas Inc.

Metawells Oil & Gas Inc., a development stage company, is pursuing the acquisition and development of domestic US oil and gas resources. The Company will seek opportunities in known productive basins in proven fields with proven reserves.

A combination with South Plains Petroleum, Inc. would accomplish that goal.

For more information:

Ronald Minsky, CEO
Phone: (212) 381-8029
[email protected]

Forward Looking Statement

Safe Harbor Statement - In addition to historical information, this press release may contain statements that constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this press release include the intent, belief, or expectations of the Company and members of its management team with respect to the Company's future business operations and the assumptions upon which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those contemplated by such forward-looking statements. Factors that could cause these differences include, but are not limited to, failure to complete anticipated sales under negotiations, lack of revenue growth, client discontinuances, failure to realize improvements in performance, efficiency, profitability, and adverse developments with respect to litigation or increased litigation costs, the operation or performance of the Company's business units or the market price of its common stock. Additional factors that could cause actual results to differ materially from those contemplated within this press release can also be found on the Company's website. The Company disclaims any responsibility to update any forward-looking statements.

SOURCE: Metawells Oil & Gas, Inc.

View the original press release on ACCESS Newswire

D.Sawyer--AMWN