SEATTLE, Dec. 14, 2010 (GLOBE NEWSWIRE) -- GeoBio Energy, Inc. (Pink Sheets:GBOE) ("GeoBio"), an oil and natural gas services company, discusses its acquisition and organic growth strategy. The strategy, developed in conjunction with our management, investment bankers and financial advisors, focuses on oil and natural gas service companies in the shale play areas that exhibit gross revenue in the $10M to $50M range, consistent profitability and growth. Multiple key strategic acquisitions are planned throughout the next five years -- adding significant revenue and profitability along with geographic reach and new service capabilities. Certain of these additional acquisition opportunities are currently in due diligence. Prospective acquisition targets include other civil construction, pipeline construction, chemical blending/application, equipment, field services and fracking water companies.
Additionally, GeoBio expects to grow organically by expanding geographically through the existing relationships of its business acquisitions, with large multi-national customers, and by taking advantage of synergies between its companies' customer bases. New exploration and production is expanding at a rapid pace, especially in the shale areas of the US. The newly developing Marcellus shale play in Pennsylvania along with the Colorado, Wyoming, North Dakota, Texas and Louisiana shale plays all are planned expansion areas for GeoBio. GeoBio intends to expand internationally as well with the first targeted area being the active oil sands area of Alberta, Canada.
John L Sams, President and CEO of GeoBio, commented, "The reason the marketplace sees us negotiating with multiple companies simultaneously is because bigger is better and easier to finance. Our financing partners are specialists in financing transactions within a target amount of valuation."
Expanding on this John L Sams added, "Given the amount of time and man power needed to evaluate transactions for financing, many investors require relatively larger transactions to justify the associated costs, hence GeoBio has multiple targets in different phases of closing, due diligence and negotiations. We believe that the acquired companies will provide a solid platform for long-term growth, expansion and profitability, with immediate revenue and profits. Based on a proactive, strategic sales and marketing plan, taking advantage of the synergies between the companies, cross selling and expanding capabilities and geographically operations, we believe we will create significant value for our shareholders."
About GeoBio Energy: www.GeoBioEnergyInc.com
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.
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