Gold Coast Mining Announces Acquisition of Lease/Working Interest in Oil Field
August 06 2013 - 2:14PM
Marketwired
Gold Coast Mining Corp. (OTC Pink: GDSM), is pleased to announce
that it has closed an investment in an oil field/well. Details as
follows:
- The operator and developer is Tiger Development LLC which is
drilling a 4,740 foot vertical depth well in Section 13-T25N-R6W,
Garfield Twp., Kalkaska Co., Michigan. The well is near completion
and production/pumping of oil should commence no later than the end
of August 2013. The Company has all the engineering and geological
reports, as well as daily drill reports which will be posted on its
Website once the site is fully developed.
- The well is situated on over 1,100 acres of land controlled by
Tiger Development, in which the Company also has a lease interest.
It is reported that Encana, an investment grade oil & gas
company owns the property surrounding our land and has several
wells producing. Tiger Development's current plan is to drill
additional wells on the land, which also include the prolific
Collingswood shale, in which the Company can participate.
- From an economic perspective, the well is projected to produce
50-60 barrels a day. Based on the engineering reports and historic
characteristics of the Garfield formation, the well is expected to
produce at the same flow rate for 40 years.
- Given the late stage of well development, the Company was able
to secure its interest through an existing large investor, Bubblin
Crude Corp., with who Mr. Shea, CEO, has a close relationship. The
Company's interest was acquired at Bubblin Crude's cost.
- Due to the Company's limited capital resources, to date, it has
closed a 2% interest in the project with an agreement to increase
the interest to 5% by month end. Each percentage of interest cost
the Company $10,000.
- The economic potential is tremendous given the limited
investment. Management projects that with at a 5% interest, the
monthly net revenues would approximate $6,000. Again, this income
stream requires no additional overhead or costs and is projected to
run for 40 years.
Mr. Shea stated, "We are very fortunate to be able to
participate in this project and have a strong desire to obtain the
5% interest level. While the projected monthly net revenue is only
$6,000, one to two more similar investments should put the company
in a position of sustainable profitability. This is part of my
first step in stabilizing the company and utilizing share issuances
only for accretive acquisitions."
Shea continued, "As the first part of the my strategy is
underway, Management can now look toward phase two which may
include business line diversification and/or acquisition of a
larger company via a reverse merger. Obviously, the later is much
more challenging and the Company must complete its audit and Form
10 for that to be a viable option. Several opportunities are in
different stages of due diligence."
Lastly Shea commented, "If we are fortunate enough to acquire a
small portfolio of these well interests, and a capital need arose
for a more lucrative venture, I would not be averse to selling the
income streams at a reasonable discount to a NPV (net present
value)."
The Company will host its quarterly conference call at the end
of August at which time a full update will be given, including
financing of the well interest, audit, Form 10, etc. Details will
be provided shortly.
ABOUT GOLD COAST MINING
Gold Coast Mining Corp plans to pursue growth and enhance
shareholder value through acquisition opportunities in and out of
the mining industry. There are many lucrative mining projects that
are sitting idle due to lack of capital and/or financing direction.
Gold Coast will seek to capitalize on these opportunities by
securing capital, finance consulting, equipment assistance and
other financial assistance to these companies/projects.
Safe Harbor Statement
Matters discussed in this press release contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. When used in this press release, the words
"anticipate," "believe," "estimate," "may," "intend," "expect" and
similar expressions identify such forward-looking statements.
Actual results, performance or achievements could differ materially
from those contemplated, expressed or implied by the
forward-looking statements contained herein. These forward-looking
statements are based largely on the expectations of the Company and
are subject to a number of risks and uncertainties. These include,
but are not limited to: the impact of economic, competitive and
other factors affecting the Company and its operations, markets,
product, and distributor performance.
Gold Coast Mining Contact: Michael Shea Phone: 203-210-5614
Email: michael.shea@gdsmholdings.com Twitter: @GoldCoastMining
Visit Us on Facebook: Gold Coast Mining
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