ST. PETERSBURG, FL / ACCESSWIRE / October 6, 2015 / Sylios Corp (OTC Pink: UNGS), a holding company with operations engaged in the exploration and development of oil and natural gas properties, and investments in equities and corporate debt, is pleased to announce that it has closed on a transaction to acquire interests in two producing oil wells.
On September 16, 2015, the Company entered into an Agreement to purchase royalties in the Jerry Green 7-3-TW and James Pharis K-1 oil wells located in Fentress County, Tennessee and Cumberland County, Kentucky, respectively. Upon the terms of the Agreement, the Company will receive one hundred percent of the payments from production due to the Operator until a defined financial benefit is received, thereafter the Company shall maintain a fifteen percent (15%) and five percent (5%) royalty, respectively.
The Jerry Green 7-3-TW well drilled to a total depth of 1550' produces from the Murfreesboro formation. Current production is 2 BOD. The James Pharis K-1 well is drilled to a total depth of 675' with production from the Sunny Brook formation. The James Pharis well is being deepened to a new total depth of 1800' to test production capabilities from the third break of the Knox formation. Depending upon the completion results, the well will be placed into production immediately or stimulated via an acid frac job. Keller Drilling, LLC will act as the Operator of both wells.
Management's decision to expand the Company's oil operations came from the numerous investment opportunities that have been recently presented. The Company will continue to evaluate the acquisition of additional royalty and working interests in Kentucky and Tennessee. The Company is currently interviewing Operators in Kentucky to place its shut-in wells back into production. The Company has elected to forgo the sale of any of its wells in the state of Kentucky.
Wayne Anderson, President of Sylios Corp, noted, "With the dramatic decrease in oil pricing, many Operators have elected to shut-in wells or sell leaseholds with producing wells. The Company has been approached by several Operators over the last few months about acquiring production with attractive rates of return. We are pleased to be working with Keller Drilling and anticipate that the Company will be releasing more news in the near term on this relationship."
About Keller Drilling, LLC
Keller Drilling, LLC is a full service oil company which includes leasing, drilling, completing, servicing and selling oil to purchasers without any outside entity. They have leased acreage strategically near or on some of the largest producing wells in our area and developed relationships with landowners to expand their lease hold.
About Sylios Corp
Sylios Corp, based in St. Petersburg, FL, is a holding corporation with operations engaged in the exploration and development of oil and natural gas properties, and investments in equities and corporate debt. More information can be found at the Company's corporate website at www.sylios.com.
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, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. 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, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company. Additional risks and uncertainties are set forth in the Company's Unaudited Annual Report for the year ended December 31, 2014, which can be found on the OTC Markets website, www.otcmarkets.com.
SOURCE: Sylios Corp