SEATTLE, Feb. 5, 2010 (GLOBE NEWSWIRE) -- GeoBio Energy, Inc. (Pink Sheets:GBOE) ("GeoBio"), announces it has signed a Letter of Intent (LOI) to acquire a Colorado-based civil construction company ("Company") that specializes in natural gas and oil field site preparation and maintenance.
Commencing operations in 1996, the Company constructs, among other things, sites and platforms for drilling and reclaiming locations, access roads to and from wells, and reserve pits and production facility pads. The Company has served several major international oil and gas companies. Its projects are primarily focused in the natural gas rich Piceance Creek Basin. Additional construction services include winter road maintenance programs and storm water management techniques. As oil and natural gas exploration are expected to experience ever rising demand in the foreseeable future, GeoBio believes that experienced, reputable companies that construct natural gas and oil sites will experience increasing demand as well, throughout North America and beyond.
L.G. Miyatovich, CEO of GeoBio, commented, "This prospective acquisition target provides an exciting opportunity and is a great complement to H&M Precision Products, Inc. (H&M). We believe both companies provide the platform necessary for us to benefit from the growing oil and natural gas services industry. We expect that the Company's established construction capabilities, along with H&M's oil and natural gas chemical blending services, will provide synergistic revenue opportunities over a broad range of oil and gas services, and will potentially provide considerable added value to our customers."
GeoBio and its investment bankers, Goodrich Capital, LLC, are currently working to secure financing of up to $20 million to complete the acquisitions of the target Company and H&M.
About GeoBio Energy:
GeoBio's business model emphasizes the acquisition and operation of existing companies in the oil and gas services and energy industry. The company is working to develop more efficient and alternative methods for handling existing resources in this sector in order to realize greater efficiencies and provide efficient, green technology services.
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