HENDERSON, NEVADA--(Marketwire - 05/06/11) - Fortune Oil & Gas, Inc. (PINK SHEETS:FOGC - News) (www.fortuneoilandgascorp.com) is pleased to announce that a deal to acquire Cressent Energy (www.cressentenergy.com) from King Resources, Inc. (PINK SHEETS:KING - News) (www.king-resources.com) will close shortly.
Cressent anticipates producing up to 200 barrels of oil a day by the end of the year after reopening almost three dozen Texas oil wells. With oil prices hovering around $100 per barrel, it's looking at pumping approximately $20,000 worth of oil to the surface each day. That translates to about $7 million annually if everything goes as anticipated. Cressent has all of the equipment necessary to operate these relatively shallow oil wells, and it won't need to spend additional funds to acquire new machinery in order to exploit them.
Cressent chief executive officer Louis Purvis, who has more than 35 years of experience in the oil and gas business, will become FOGC's new CEO. Current CEO Serge S. Acimovic will become FOGC's chief operating officer. He'll continue overseeing the company's expansion into mining, which will be backed by revenue generated from Cressent's oil and gas production.
Following this news, and FOGC's reorganization, the company will continue its expansion. This includes discussions to purchase a lithium mining operation in Argentina. Management believes that Cressent, as a revenue-generating venture, will provide leverage for FOGC's mining expansion.
FOGC will keep its investors and followers updated on any new developments in a timely fashion.
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