HOUSTON, Jan. 6, 2010 (GLOBE NEWSWIRE) -- Baron Energy, Inc. (OTCBB:BROE) ("the Company"), an independent oil and gas company, today provides an operational update and growth strategy.
The Company continues to work on the pending merger with Pertex LP and is pleased with the progress of the due diligence. Pertex LP currently owns a working interest ranging from 5% to 100% in 27 wells located in Borden, Garza, Jones, Kent, Nolan, Reagan, Runnels, Scurry and Taylor Counties, Texas with approximately 40 Boepd (Barrels or oil equivalent per day) in net production, 230 Boepd gross. Pertex plans to increase its production via a combination of infill drilling to develop reserves in the properties already under management and additional acquisitions in its core areas. Pertex LP has more than 3,000 acres under lease in the Permian Basin.
Management Comments
Mr. Michael Maguire, Chief Executive Officer of Baron Energy, said, "This is a good time to be acquiring acreage that has existing production along with some developmental potential and we feel confident that our strategy of growing through a combination of smart acquisitions and low risk developmental drilling will allow us to reach our goal of 250 barrels of oil equivalent by the end of 2010."
Mr. Ronnie L. Steinocher, Manager and General Partner of Pertex, said, "Although our primary focus is to continue to work through all the details surrounding the proposed merger between Baron and Pertex, we also are continuing business as usual, including ongoing negotiations on a number of potential producing property acquisitions. These are assets that would bring with them immediate production and revenue as well as a number of potential drilling locations."
For more information about Baron Energy please see our web site at www.baronenergy.com.
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.