HOUSTON, Nov. 24, 2009 (GLOBE NEWSWIRE) -- Baron Energy, Inc. (OTCBB:BROE) ("Baron"), an independent oil and gas company, today announced the execution of a memorandum of understanding with an established oil and gas operator with producing assets located in Texas.
The non-binding memorandum of understanding ("MOU") is intended to set out the general conditions for an acquisition of the target company's working interest, including all associated equipment and property rights, in oil and gas fields located in Henderson and Navarro Counties, Texas in exchange for shares of the Company's restricted common stock.
Under the terms of the MOU, the parties will complete relevant investigations and due diligence with respect to each other's assets, liabilities and corporate structure before November 30, 2009, with the expectation of entering into a binding agreement before December 31, 2009. Closing is not expected to occur before January 31, 2010. Terms of the deal were not initially disclosed.
Management Comments
Mr. Michael Maguire, Chief Executive Officer of Baron Energy, said, "We are conducting due diligence at this time and are excited at the potential to bring this opportunity to Baron. The acquisition of this asset would be a great boost to the company."
Information on Baron Energy can be found on www.baronenergy.com
About Baron Energy
Baron Energy (OTCBB:BROE) is an independent oil and gas exploration and development company with assets in the prolific oil-producing region of North Texas and a significant acreage position along the Texas Gulf Coast. Baron's strategy is to grow production and reserves through low-risk, low-cost exploitation and development combined with higher risk exploration drilling in prospects that have the potential for significant hydrocarbon discoveries. This will be supplemented with acquisitions of underdeveloped properties that complement its core properties.
Baron intends to focus its efforts on the development and utilization of its South Texas property primarily through joint ventures with industry partners. In addition, the company will continue taking advantage of low-risk opportunities on its existing acreage while continuing to consider exploratory opportunities by applying technology and capital to deeper zones with significant upside potential. In conjunction, Baron will pursue accretive acquisitions in core areas.
Forward-Looking Statement
This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement identified by the words "expects," "projects," "plans," "feels," "anticipates" and certain of the other foregoing statements may be deemed "forward-looking statements." Although Baron Energy believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this press release. These include risks inherent in the drilling of oil and natural gas wells, including risks of fire, explosion, blowout, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks inherent in oil and natural gas drilling and production activities, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of drilling operations; risks with respect to oil and natural gas prices, a material decline in production which could cause the Company to delay or suspend planned drilling operations or reduce production levels; and risks relating to the availability of capital to fund drilling operations that can be adversely affected by adverse drilling results, production declines and declines in oil and gas prices and other risk factors. The Company's complete filings with the Securities and Exchange Commission are available at http://www.sec.gov.