First Colombia Gold Provides Update on Letter of Intent to Acquire Oil and Gas Assets
First Colombia Gold (OTCQB: FCGD) (“First Colombia” or “The Company”) is pleased to provide an update on its due diligence in relation to the signed a Letter of Intent (“LOI”) to acquire a nineteen and a half percent (19.5%) interest in three private oil companies located in south central Kentucky.
As previously announced, the signed LOI outlines the structure of the transaction, which will give First Colombia a working interest in over 50 active producing wells, ownership in 39 active oil and gas leases covering 5,322 acres, as well as full title and ownership to six acres of real estate, which includes a 6800 sq. ft. office complex and maintenance facility. The LOI also includes drilling and operating equipment, including two drilling rigs and six completion rigs.
Over the past month, the company has been conducting a thorough evaluation of all of the properties which have included site visits, personnel interviews, document review and a physical inspection of titles, deeds and assets. Based upon our thorough analysis, we can now confirm that there are an additional 105 acres of land that will be included in the acquisition in which The Company will own outright in addition to also owning the mineral rights. Additionally, there are 5 of the 39 leases that already have reserve studies completed on the properties that show over 3 million barrels of proven oil reserves on the properties. Perhaps the most exciting confirmation, however, is that these leases being acquired produced over 12,000 barrels of crude in 2013 and are on track to match that production output in 2014. That means that these leases generated over one million dollars of revenue in 2013.
“Based upon these findings and developments, we are now engaged in finalizing the final contract and both parties desire to close quickly. We have set a preliminary goal to close before the end of July,” First Colombia Gold CEO, E. Robert Gates, stated. “We are very pleased with our due diligence findings and are eager to complete this acquisition. We have very strict criteria when considering possible acquisitions, which includes a stringent requirement for short term asset appreciation and a positive cash flow growth. We are assembling a dynamic management team that can make significant contributions to the overall productivity of these companies. We fully expect First Colombia should be booking revenue and income from this potential acquisition in our third quarter.”
This acquisition along with the installation of the new energy division of FCGD, has not overshadowed the progress occurring within the mining division of the company. We are currently proceeding with exploration at the Nile Mine project and on its forty acre Skip unpatented mining claims. The company is also considering various financial alternatives both to fund the planned acquisition, and improve its working capital position. Gates was very clear about his intention to continue to develop the mining projects, “Our energy division is certainly coming out of the gates with a great deal of activity and momentum, but we will not and never intended to neglect the development of our mining projects. Our newly appointed management team is very hard at work in developing those projects and putting the capital in place to advance our mining division.”
About First Colombia Gold
First Colombia Gold Corp. is a capital company focused on acquiring, developing and advancing natural resource, energy, and real estate projects in Europe, North America, and South America. Our business model is to acquire undervalued assets combining potential for building assets values and cash flow through leverage to improved operational efficiencies and development.
Our current activity focus is on precious metal exploration in Montana, and preparing for increased activity in our energy division.
Investor Inquiries:
David Kugelman, Investor Relations
Phone: (404) 856-9157 / (866) 692-6847
Website: www.firstcolombiagold.com
Email: info@firstcolombiagold.com
Disclaimer
This release contains forward-looking statements that are based on beliefs of First Colombia Gold Corp. management and reflect First Colombia Gold Corp.'s current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities and Exchange Act of 1934, as amended. When we use in this release, the words "estimate," "project," "believe," "anticipate," "intend," "expect," "plan," "predict," "may," "should," "will," "can," the negative of these words, or such other variations thereon, or comparable terminology, are all intended to identify forward looking statements. Such statements reflect the current views of First Colombia Gold Corp. with respect to future events based on currently available information and are subject to numerous assumptions, risks and uncertainties, including but not limited to, risks and uncertainties pertaining to development of mining properties, changes in economic conditions and other risks, uncertainties and factors, which may cause the actual results, performance, or achievement expressed or implied by such forward looking statements to differ materially from the forward looking statements. The information contained in this press release is historical in nature, has not been updated, and is current only to the date shown in this press release. This information may no longer be accurate and therefore you should not rely on the information contained in this press release. To the extent permitted by law, First Colombia Gold Corp. and its employees, agents and consultants exclude all liability for any loss or damage arising from the use of, or reliance on, any such information, whether or not caused by any negligent act or omission. This press release incorporates by reference the Company's filings with the SEC including 10k, 10Q, 8K reports and other filings. Investors are encouraged to review all filings. There is no assurance First Colombia Gold Corp. will identify projects of merit or if it will have sufficient financing to implement its business plan. There is no assurance that the Company’s due diligence on the potential acquisition of oil and gas assets will be favorable nor that definitive terms can be negotiated. Information in this release includes representations form the private companies referred to which has not been independently verified by the company. A downturn in oil prices would effect the potential profitability of the proposed acquisition negatively. Third quarter forecast in income from dividends or operations is dependent on closing our first acquisition, and additional acquisitions of revenue-producing operations.
Contact
First Colombia Gold
David Kugelman
Phone: (404) 856-9157 / (866) 692-6847
Investor Relations
info@firstcolombiagold.com
www.firstcolombiagold.com