SEATTLE, July 20, 2010 (GLOBE NEWSWIRE) -- GeoBio Energy, Inc. (Pink Sheets:GBOE) ("GeoBio"), confirming its plan to become a significant player in the oil and natural gas services sector, has firm schedules for its previously announced acquisitions. The civil construction company operating in the Piceance Creek Basin shale play area of Colorado is scheduled for closing on or before September 15, 2010. H&M Precision Products (H&M), a chemical treatment and service company focused on oil and natural gas production improvement in the San Juan Basin shale play area of New Mexico is expected to close on or before September 10, 2010. These firm dates were established recently in connection with the execution of amendments to the respective definitive Stock Purchase Agreements.
In addition, GeoBio Energy recently announced signing a Letter of Intent to purchase all the ownership interests of Magna Energy Services, LLC ("Magna"), located in Aztec, New Mexico. The acquisition of Magna is planned to be completed soon after the first two acquisitions.
Magna and H&M are chemical treatment and service companies focused on oil and natural gas production improvement in the San Juan Basin shale play area of New Mexico. The chemical business, when coupled with the proposed acquisition of a civil construction company operating in the Piceance Creek Basin shale play area of Colorado, provide a solid platform for substantial growth.
H&M, Magna, and the civil construction business will benefit from the vision and experience of a strong management team and a proactive strategic sales and marketing plan. This combination is expected to unlock additional value through growth and expansion in existing and new geographic markets. Through its proactive sales and marketing effort, GeoBio expects to expand the customer base of H&M and Magna throughout the San Juan Basin.
Further, given that the Piceance Creek Basin is developing at a rapid pace, GeoBio intends to immediately establish chemical blending and service operations in the Piceance Basin utilizing the relationships of the civil construction company. GeoBio expects to grow organically by expanding geographically through the existing relationships of its pending business acquisitions and taking advantage of synergies between the three companies' customer bases.
Important as well, GeoBio expects to have all of its interim and annual 1934 Exchange Act reports up-to-date and filed within the next couple of weeks. In addition, the audits for the civil construction company and H&M Precision Products are almost complete.
John L Sams, incoming CEO of GeoBio, commented, "We are very happy to be on track to compete our acquisitions. We remain excited with the opportunities in the oil and natural gas service markets of North America and internationally with our three pending acquisitions. These three companies provide a solid platform for long term growth, expansion and profitability with immediate opportunities for revenue and profits. We continue to believe this will create significant short and long term value for our shareholders."
For additional information, please visit GeoBio's web site: http://www.geobioenergyinc.com/
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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