SEATTLE, May 4, 2010 (GLOBE NEWSWIRE) -- GeoBio Energy, Inc. (Pink Sheets:GBOE) ("GeoBio") is an oil and natural gas services company and plans to be a leader in its field. With its previously announced, proposed acquisitions of a successful civil construction company located and operating in the Piceance Creek Basin shale play area of Colorado and H&M Precision Products (H&M), a chemical company focused on production improvement located in the San Juan Basin shale play area of New Mexico, GeoBio is well positioned for growth.
These first two acquisitions, which GeoBio plans to complete in early summer, 2010, are a solid foundation for GeoBio, having historically generated a 35% revenue growth rate with consistent and stellar profitability. They both operate currently in very active and ever increasing production regions for oil and natural gas from shale. A key customer in the Piceance Creek Basin presently is producing 100 million cubic feet of gas per day and is projecting to produce 1 billion cubic feet per day. This alone represents a 10 fold opportunity for growth.
The demand for oil and natural gas continues to increase in North America and around the world. New exploration and production is expanding at a rapid pace, especially in the shale areas of the U.S. The newly developing Marcellus shale play in Pennsylvania, along with Texas and Louisiana shale plays, are all planned expansion areas for GeoBio. Major blue chip customers are asking for these businesses to expand and serve these areas to address pent up demand. In addition, after the completion of the business acquisitions, Geo Bio intends to expand internationally with the first targeted area being the very active oil sands area of Alberta, Canada.
GeoBio expects to grow organically by expanding geographically through the existing relationships of its pending business acquisitions, with large multi-national customers, and by taking advantage of synergies between the two companies' customer bases. Additionally, GeoBio intends to add to these capabilities internally and aggressively through multiple key strategic acquisitions adding both geographic reach and new capabilities. At present, several additional acquisition opportunities are currently being evaluated.
L.G. Miyatovich, currently the CEO of GeoBio, commented, "We are excited about the opportunities in the oil and natural gas markets of North America and internationally. The two proposed GeoBio acquisitions will provide a solid platform for long term growth and profitability with immediate revenue and profits. With these acquisitions, and a well developed growth strategy and a new experienced management team-- to be announced soon-- GeoBio is poised and ready to be a leader in the oil and natural gas services market."
GeoBio and its investment bankers, I-Bankers Securities,Inc., (www.i-bankers.net), are currently working to secure financing of up to $20 million to complete the acquisitions of the Colorado acquisition and H&M.
About GeoBio Energy:
GeoBio Energy's business model emphasizes the acquisition and operation of existing companies in the oil and gas services and energy industry. As oil well and gas exploration continue in the face of ever rising demand, preparing and monitoring drilling sites and obtaining peak efficiency and production from existing, aging wells becomes increasingly important. GeoBio believes this to be a significant growth opportunity in its strategy to combine and consolidate companies in the oil and natural gas services sector.
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