DGAP-News: GRIT International Inc.: SUBSIDIARY TEXAS PETROLEUM
(firmenpresse) - GRIT International Inc. / Key word(s): Miscellaneous
20.10.2010 09:00
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GRIT INTERNATIONAL's TEXAS PETROLEUM SUBSIDIARY TO GO PUBLIC WITH OPENING
SHARE PRICE TO BE 0.75EUR OFFERED TO GRIT SHAREHOLDERS AT 0.01EUR PER SHARE
EXPIRING DECEMBER 31, 2010
GRANDE PRAIRIE, AB - Wednesday - October 20th, 2010: - GRIT INTERNATIONAL
(3GR1.F) and (3GR1.DE). Recently the company announced how it has entered
into discussions with a Texas based company to purchase a large oil and gas
field of proven developed and proven undeveloped properties shown to have
10,000,000 barrels. The company has also set a plan in motion to acquire
additional properties from smaller producers for the purpose of
consolidating these operations.
In order to facilitate this transaction, it is important for GRIT
International to organize and create a fully listed subsidiary on the
Frankfurt Stock Exchange. This subsidiary named TEXAS PETROLEUM Corp. is
being created for the benefit of all shareholders of GRIT. Therefore, as of
the date December 31st 2010 (record date), all shareholders of record will
be entitled to receive one new subsidiary share for every share of GRIT
International that is held (1:1). These new subsidiary shares have to be
purchased from the company for just 0.01EUR per share. The company expects
to issue 80 million shares of this new subsidiary, the right to purchase
subsidiary shares at 0.01EUR per share will be non-transferable and is
available only to GRIT shareholders as of the record date. Payment for the
purchase of such shares must be received by the company on or before
January 31st 2011 (payment date) and the company will issue and deliver all
new shares to all participating GRIT shareholders by February 28th 2011
(delivery date) or earlier. GRIT Management expects the new listing to take
effect and begin trading no later than by January 31st 2011.
The company has calculated the asset being purchased and its proven
developed and proven undeveloped reserves of 10,000,000 barrels along with
the current price of oil at $83 USD per barrel. Based on this information,
the company estimates Euro 7.50 per share asset value based on a currency
exchange rate of Euro 1.39. The company has decided to discount this per
share amount by 90% for an opening price of Euro 0.75 per share on the
first day of trading. This final calculation will be in-line with
regulatory and accounting principles and rules.
Virtually all oil and gas service companies, project managers, operators
and exploration companies are over-booked, or have significant projects on
the table and ready for production. This current boom has been caused by
high energy prices. The price of oil depends upon many factors, some of
which some are political and others are purely a function of consumer
demand. Weather and economics also make accurate predictions of oil prices
difficult if not impossible. However the consensus among the experts is
that the price is expected to remain high for the foreseeable future.
Therefore it is likely that the petroleum industry should expect strong
revenues and record profits well into the future.
The Company's projects are located primarily in North America, but are not
limited to these areas as new projects are reviewed weekly for inclusion
into the Petroleum Business Plan. TEXAS PETROLEUM will focus on properties
and companies that demonstrate the highest potential for success. TEXAS
PETROLEUM has partnered with established professionals in the oil and gas
sector, having experience in operations and management. All Petroleum
projects have either production revenue; or service revenues where
possible, properties will have all seismic information for examination
including historical logs and all investments into producing properties
will be thoroughly inspected and researched.
TEXAS PETROLEUM'S goal is to invest and take a working interest in oil and
gas properties. These projects will be purchased directly from producers
and in some cases will be selected from auctions which are held worldwide.
Participation will be based on the required purchase price and of course
the quality of the project. Ownership will range from a 1% Working Interest
(WI) to as much as 100% (WI). The required amount of financing is
$10,000,000. TEXAS PETROLEUM will in-turn, purchase its interests in an
estimated 300 medium and small producing wells. The company will then have
significant cash flow going into its second year. During this period TEXAS
PETROLEUM will continue to increase its portfolio size, combined, net
earnings from all projects could very well exceed $9,000,000 in total or
$0.12 per TEXAS PETROLEUM share (which constitutes besides the
aforementioned asset value of EUR0.75 per share also considerable earnings
value of $1.80 per share based on a regular 15 times earnings ratio).
Additional projects will be purchased during the second year and TEXAS
PETROLEUM plans to increase its portfolio to include interest in up to 500
wells over the next two years.
There are literally thousands of oil re-work projects in North America and
the company intends to take advantage of this. In Canada alone, over 100
new wells are spud each day. The real opportunity is in the consolidation
of smaller and mid-size players who will benefit from a structured exit
strategy and economies of scale that a large producer can offer. This is
why TEXAS PETROLEUM has decided to develop this tried and true business
model and we plan to grow primarily by acquisition.
Further, Grit International will arrange for a $10,000,000 financing with
the help of LeadDog Capital LLC for the subsidiary which will be used to
develop all new projects and to assist with acquisitions. The new website
for this division is still under construction, so please watch for new
information regarding the launching of the site.
ABOUT
GRIT INTERNATIONAL INC
GRIT International is a Canadian based company registered in the State of
Nevada, US; -Diversified Industrial Services Company, offering Support
Services, Utilities, Oil&Gas and Mineral holdings. The businesses that
make up GRIT INTL - Integrate amongst each other providing a present
revenue from the energy industry and also seeks out Environmentally
Sustainable solutions in nuclear energy, renewable resources in bio-waste
and other alternative fuels available at present time. GRIT foresees
expanding its divisions from an international to that of a Global services
provider. For more information please visit the company's website at
www.gritintl.com
LeadDog Capital LLC
LeadDog Capital L.P. (the 'Fund') is managed by its General Partner,
LeadDog Capital Markets, LLC. The LeadDog Management Team has significant
experience in the capital markets involving private placements, reverse
mergers, alternative public offerings, asset based financing and bridge
loan financing. For more information please visit the website
www.leaddogcapital.com
Safe Harbor Statement; under the Private Securities Litigation Reform Act
of 1995: The statements contained herein which are not historical are
forward-looking statements that are subject to risks and uncertainties that
could cause actual results to differ materially from those expressed in the
forward-looking statements, including, but not limited to, certain delays
beyond the company's control with respect to market acceptance of new
technologies or products, delays in testing and evaluation of products, and
other risks detailed from time to time in the Company's filings with the
Securities and Exchange Commission.
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Contact: GRIT International Inc.,
Investors Relations
Website: www.gritintl.com;
E-mail: grit-admin(at)gritintl.com
P : 780.513.1125
F : 780.814.5584
A : Suite 201, 9914 - 109th Avenue, Grande Prairie, AB, T8V 1R7
Investor Relations - German
Mr. James Stewart
P: 0 2161 49694870
E: jstewart(at)gritintl.com
20.10.2010 09:00 Dissemination of a Corporate News, transmitted by DGAP -
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Datum: 20.10.2010 - 09:00 Uhr
Sprache: Deutsch
News-ID 32369
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Kategorie:
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