BitNile Holdings Forms Ault Energy to Make Strategic Oil and Gas Acquisitions
July 11 2022 - 6:30AM
Business Wire
Ault Energy to partner with White River Holdings Corp on
drilling projects across 30,000 acres in Texas, Louisiana and
Mississippi
BitNile Holdings, Inc. (NYSE American: NILE), a diversified
holding company (“BitNile” or the “Company”) today
announced the formation of Ault Energy, LLC (“Ault Energy”),
a subsidiary of Ault Alliance, Inc., itself a subsidiary of
BitNile.
Background on Ault Energy’s Oil and Gas Drilling
Rights
- The Company recently completed its previously announced
transaction with Ecoark Holdings, Inc. (“Ecoark”) (NASDAQ:
ZEST) by funding the purchase of $12,000,000 of Series A
Convertible Redeemable Preferred Stock of Ecoark pursuant to the
previously announced securities purchase agreement (the
“Agreement”) between its wholly owned subsidiary Digital
Power Lending, LLC (“DPL”) and Ecoark;
- The Agreement provides Ault Energy, as a designee of DPL, the
right to purchase up to 25% in various drilling projects of White
River Holdings Corp (“White River”), a wholly owned
subsidiary of Ecoark, commencing in July 2022;
- White River may, in its sole discretion, allocate a greater
percentage to DPL or its designee than 25%; and Ault Energy’s right
to purchase a greater percentage than 25% is subject to reaching a
mutual agreement with White River.
Ault Energy Partnership with White River
Partnering with a vertically integrated operator such as White
River would provide Ault Energy with the opportunity to make oil
and gas acquisitions with a proven partner that has a leasehold of
ready-to-drill prospects in producing fields. Ault Energy has been
advised that White River currently owns a drilling rig that can
reach depths of up to 18,000 feet, as well as three workover rigs
for re-entry and completion procedures. Ault Energy and White River
have preliminary plans to drill at least 100 wells over the next 60
months over the approximately 30,000 acres in Texas, Louisiana and
Mississippi that White River currently is leasing. BitNile is
encouraged by its discussions with White River and the meaningful
potential represented by this opportunity. Ault Energy and White
River currently expect to purchase up to two additional drilling
rigs this year to allow concurrent drilling projects going forward,
but there can be no assurance that these plans will materialize
during 2022, if at all. Ault Energy expects to allocate significant
capital over the next five years towards these drilling
projects.
The Company’s Founder and Executive Chairman, Milton “Todd”
Ault, III, stated, “The formation of Ault Energy is the result of a
long-term goal to partner with an experienced, competent team to
extract oil in a location known for large oil reserves. We have
confidence in the team at Ecoark and White River and believe this
is a great opportunity to allocate capital towards oil and gas
projects. White River has successfully completed numerous wells
including a directional well in the Austin Chalk formation of
Louisiana. As we gather data from our drilling projects and
third-party studies, we plan to provide updates to our outlook on
these initiatives.”
Ecoark’s Chairman and CEO, Randy May, stated, “The opportunity
to partner with Ault Energy will allow White River to greatly scale
its vertically integrated oil and gas exploration, production and
drilling operations. We are looking forward to aggressively
drilling out our leasehold over the coming months and years with
Ault Energy.”
About BitNile Holdings, Inc.
BitNile Holdings, Inc. is a diversified holding company pursuing
growth by acquiring undervalued businesses and disruptive
technologies with a global impact. Through its wholly and
majority-owned subsidiaries and strategic investments, BitNile owns
and operates a data center at which it mines Bitcoin and provides
mission-critical products that support a diverse range of
industries, including defense/aerospace, industrial, automotive,
telecommunications, medical/biopharma and textiles. In addition,
BitNile extends credit to select entrepreneurial businesses through
a licensed lending subsidiary. BitNile’s headquarters are located
at 11411 Southern Highlands Parkway, Suite 240, Las Vegas, NV
89141; www.BitNile.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements generally include
statements that are predictive in nature and depend upon or refer
to future events or conditions, and include words such as
“believes,” “plans,” “anticipates,” “projects,” “estimates,”
“expects,” “intends,” “strategy,” “future,” “opportunity,” “may,”
“will,” “should,” “could,” “potential,” or similar expressions.
Statements that are not historical facts are forward-looking
statements. Forward-looking statements are based on current beliefs
and assumptions that are subject to risks and uncertainties.
Forward-looking statements speak only as of the date they are made,
and the Company undertakes no obligation to update any of them
publicly in light of new information or future events. Actual
results could differ materially from those contained in any
forward-looking statement as a result of various factors. More
information, including potential risk factors, that could affect
the Company’s business and financial results are included in the
Company’s filings with the U.S. Securities and Exchange Commission,
including, but not limited to, the Company’s Forms 10-K, 10-Q and
8-K. All filings are available at www.sec.gov and on the Company’s
website at www.BitNile.com.
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BitNile Holdings Investor Contact: IR@BitNile.com or
1-888-753-2235
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