LAS VEGAS, Feb. 22, 2006 (PRIMEZONE) -- Consumer Direct of America (OTCBB:CSUA), announced today that it has signed a non-binding Letter of Intent with OMDA Oil & Gas, Inc. (Pink Sheets:OMOG) (www.omogoil.com) to acquire interest in a 1,116 Acre Fredericksburg Prospect located in Panola County TX. CSUA will be able to conduct its due diligence procedure in order to enter into a definitive agreement with OMDA. Under this agreement, CSUA would acquire up to 90% of OMDA's 75% Working Interest (which translates into 56.25% of the net revenue interest) of the Panola Field Prospect. CSUA will pay OMDA Oil & Gas, Inc. one hundred and fifty thousand dollars ($150,000) in cash and the equivalent of three hundred thousand dollars ($300,000) of registered common stock for this interest. Consumer Direct expects that the agreement will be finalized promptly.
Detailed information concerning this oil and gas lease can be viewed directly at the OMDA web site at http://www.omogoil.com/projects.html. This site includes the prospect overview, geology & history, field development, reserves & economics, and pipeline & markets.
Chairman & CEO Michael A. Barron said, "We are very happy to have finalized our Shearson acquisition by Paragon and to be moving Consumer Direct into their next phase of its business expansion. It is our intention to develop CSUA into asset driven holding company in the field of oil and gas exploration. We will pursue acquisitions, mergers, and joint ventures with existing oil and gas companies and may examine other opportunities in related mining sectors in the future. This first agreement with OMDA Oil & Gas, Inc. is key to launching our new strategic plan, as well as establishing our presence in this industry segment." Barron further stated, "Current management will remain active in operational decisions; however, CSUA will begin searching for a CEO with the necessary industry expertise to ensure our future growth and development into a successful Oil & Gas holding company. I look forward to sharing all future details with our shareholder base."
About Consumer Direct of America
Consumer Direct of America is a publicly traded company (OTCBB:CSUA). The company spent the past few years acquiring and growing its wholly owned subsidiary, Shearson Home Loans, Inc. CSUA successfully grew this division to employ over 300 people, 250 of whom are residential mortgage real estate brokerage professionals who closed loan volume of over $1 billion for the year ended December 31, 2004. This entity was recently acquired by Paragon Financial Corporation (OTCBB:PGNF) in a transaction valued at $16 million. Consumer Direct of America currently has signed a letter of intent with OMDA Oil & Gas to acquire 90% of a Horizontal play in Panola County Texas.
About OMDA Oil and Gas, Inc.
OMDA Oil and Gas, Inc. and its wholly owned subsidiaries, OMDA Oil & Gas Management, Inc. and Texas OMDA Drilling & Operating, Inc. and OMDA Oil & Gas, Inc. (Texas) are in the business of oil and gas production and lease acquisition. Currently the Company owns average participation interests approaching 47%, in 355 producing and non-producing oil and gas wells in Louisiana and Texas, as well as a 75% working interest in an 1,116 acre, horizontal play in the Panola Field, Panola County, Texas. Current acreage interests include a Carried back-in working interest of at least 7.5% up to 37.5% in a 12 well work over play in the Concorde Dome Field in Andersen County TX, and is currently partnered up with Young Oil Corp, the largest Oil and Gas producer in Tennessee on 46,000 acres in North Central Tennessee, with an initial 20% interest in a six well program and a first right of refusal on any other prospects on the Young leases.
This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties including, but not limited to, statements relating to the future anticipated direction of the Oil and Gas Industry, plans for expansion, various business development activities, planned capital expenditures, future funding resources, anticipated sales growth and potential contracts. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.