NEWPORT BEACH, Calif., Sept. 8, 2010 (GLOBE NEWSWIRE) -- Force Fuels, Inc. (OTCBB:FOFU) today announced that it has booked its first sale of crude oil now being produced on its newly acquired oil and gas leaseholds located in Montgomery and Chautauqua Counties in southern Kansas, thereby marking its transition from development stage to revenue generating company.
Force Fuels is engaged in the identification and acquisition of underperforming oil and gas assets in prolific oil and gas producing regions of the U.S. that have abandoned or marginally producing shallow wells (less than 2000 feet) on-site and offer promising potential for well site revitalization and additional drilling opportunities.
On April 26, 2010, the Company completed its first oilfield acquisition, purchasing 13 viable, contiguous oil and gas leases in southern Kansas, comprising approximately 2600 acres of land with recoverable reserves estimated to be nearly 14 million barrels of oil. Last week, Force Fuels initiated the sale of oil produced from two of its 13 leaseholds, marking a critical step forward in its strategy to improve production and optimize cash flow from the underperforming oil producing assets it acquires.
Oscar Luppi, Chairman and Chief Executive Officer of Force Fuels, noted, "We are pleased to now be generating revenue from our Kansas-based properties. In a matter of only four months time, we have acquired valuable, oil-rich leases, initiated key technological and commercial relationships, tested and implemented a refurbishing plan, commenced production on two leaseholds and completed our first sales. Moving forward, we intend to remain focused on revitalizing the remaining 11 leases, increasing our monthly oil production and achieving positive cash flow."
"To that end, we will be re-investing all cash flow generated from the sale of oil back into our Kansas properties to maximize growth of our oil production before winter arrives. Not one single dollar will be used to cover corporate overhead or any expenses that are not directly related to producing crude," concluded Luppi.
About Force Fuels, Inc.
Force Fuels, Inc.'s primary focus is in the field of regulated and standardized energy based products. Regulated energy products include oil, natural gas and electricity produced using solar and wind power. In the oil and gas field the Company plans to focus on the purchase of marginally producing shallow oil wells which can be optimized with existing technologies; the purchase of leases with potential for additional drilling in proven producing areas; and the acquisition of in-house know-how to further optimize production through stimulation, refurbishing and site optimization.
Forward Looking Statements
This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, adverse economic conditions, intense competition, lack of meaningful research results, inadequate capital, termination of contacts or agreements, adverse publicity and news coverage, inability to carry out research, development and commercialization plans, loss or retirement of key executives, acceptance of the Company's current and future products and services in the marketplace, the ability of the Company to develop effective new products or programs and receive regulatory approvals of such products, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.