Contact Information: Contact Information Dan Green 310 410-4426
Pacific Energy & Mining Company Announces Oil and Gas Acquisition
| Source: Pacific Energy & Mining Company
RENO, NV -- (MARKET WIRE) -- February 27, 2007 -- Pacific Energy & Mining Company (PINKSHEETS : PEMC )
announces the approval by the shareholders of Colorado Utah Natural Gas,
Inc. to sell its oil and gas assets to Pacific Energy & Mining Company for
stock and assumption of certain debts.
In conjunction with the transaction, Colorado Utah Natural Gas, Inc. has
withdrawn its registration statement from the United States Securities and
Exchange Commission.
The companies will complete the transaction by March 15, 2007. The
transaction will result in Pacific Energy having a present value of $80
million in oil and gas reserves over the life of the field. Pacific Energy
will take over operations of the oil and gas properties.
After issuance of the additional shares to the shareholders of Colorado
Utah Natural Gas, Inc., the Company's reserves from the acquisition will be
approximately $3.00 per share net present value as per the reserves
determined by Colorado Utah Natural Gas, based upon prices of $60 per bbl
of oil and $8 per MCF of natural gas.
Pacific Energy & Mining is a diversified company with oil and gas including
interests in Utah through its current acquisition of the assets of Colorado
Utah Natural Gas, Inc. (www.coloradoutahgas.net), a 7% working interest in
the Brennan Bottoms Oil Field in Uintah County, Utah, and a 50% revenue
interest in the Cisco Springs Oil Field in Grand County, Utah.
The Company also owns a 16.67% interest in Mar/Reg Investments, a General
Partnership, through which it holds working interests in oil wells in the
Altamont Bluebell Oil Field in Utah and in numerous oil and gas wells in
Oklahoma.
Pacific Energy also owns 80% of the outstanding shares of Pakistan Chrome
Mines Ltd., a mining company with interests in over 34,000 acres of
chromite and magnesite leases in Baluchistan, Pakistan. The leases mineral
reserves contain an estimated 4 million tons of chromite and magnesite.
Disclaimer
The foregoing contains forward-looking information within the meaning of
The Private Securities Litigation Act of 1995. Such forward-looking
statements involve certain risks and uncertainties. The actual results may
differ materially from such forward-looking statements. The company does
not undertake to publicly update or revise its forward-looking statements
even if experience or further changes make it clear that any projected
results (expressed or implied) will not be realized.