Viking Reaches Agreement to Drill New Oil Wells
NEW YORK, NY -- (Marketwired) -- 02/15/17 -- Viking Investments Group, Inc. ("Viking") (OTC PINK: VKIN) is pleased to announce its wholly-owned subsidiary, Mid-Con Petroleum, LLC ("Mid-Con"), has entered into an agreement to drill new wells on one of its existing oil leases in Eastern Kansas.
The agreement, effective December 30th, 2016, contemplates Mid-Con assigning a small portion (i.e. 2%) of its working interest in the ABC lease, located in Miami County, to an individual investor in exchange for the investor contributing capital to facilitate the drilling and completion of 6 to 7 new producing wells on the lease. Viking will retain a 93% working interest in the lease. The investor will receive one hundred percent of the tax credits available in connection with the drilling investment. The agreement is conditional upon approval of Mid-Con's senior secured lender, CrossFirst Bank, releasing its security against the 2% working interest to be assigned to the investor. Funds to cover the associated costs (approx. $150,000) have already been deposited by the investor and will be released upon the assignment being approved by the bank.
Mid-Con's operator, S & B Operating, LLC ("S&B"), will coordinate and supervise this development initiative. S&B is a subsidiary of Kansas Resource Development Company, and specializes in formulating and operating water-flood enhanced oil recovery programs. The ABC lease represents one of Mid-Con's most prolific assets and these new wells are expected to significantly increase the company's oil production from the lease in the near term. The wells will be drilled at a depth of approx. 350 feet targeting the Peru formation. Wells similar to those to be drilled on this lease have demonstrated the ability to produce for 20 - 30 years.
Viking is an independent exploration and production company focused on the acquisition and development of oil and natural gas properties in North America. The company owns oil and gas leases in Alberta, Kansas and Missouri. The company's interests in Kansas and Missouri cover over 6,000 acres of property. Viking targets under-valued assets with realistic appreciation potential.
Viking is not an investment company, as defined by the Investment Company Act of 1940.
Safe Harbor Statement:
This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company's financing plans; (ii) trends affecting the company's financial condition or results of operations; (iii) the company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk disclosed in the company's Forms 10-K and 10-Q filed with the SEC.
For additional information please contact:
James A. Doris
President and C.E.O.
Viking Investments Group, Inc.
1330 Avenue of the Americas, Suite 23A
New York, NY 10019
Source: Viking Investments Group, Inc.
Released February 15, 2017