1st NRG Reports First Utica Shale Test Well Coming in September
DENVER, CO / ACCESSWIRE / August 14, 2014 / 1st NRG Corp. (OTC Pink: FNRC) (PINKSHEETS: FNRC), is an exploration and production company currently engaged in the development of natural gas producing properties in the United States. Headquartered in Denver Colorado, our focus has been centered in the Powder River Basin, where we hold a working interest in 42 producing wells, 8 permitted locations and 3,300 undeveloped acres of coal bed methane reserves. The Company has expanded its activities into one of North America’s most exciting shale plays participating in a development of prospective acreage in SE Ohio encompassing approximately 7,000 acres.
At Clabaugh Ranch we have been slowly advancing toward the highly anticipated initial production from the 42-15 well drilled in December 2013. We are awaiting approval of our applications to use the ARID tool for water disposal, power has been installed and we are exploring our options to transport our natural gas production.
In Ohio, the permit for the vertical test well has been approved and the drill pad is being constructed. This well will be drilled through the Point Pleasant/Utica Shale complex to approximately at 7,600 feet in depth. Pending weather and rig availability, we expect the test well to be drilled in September 2014. 1st NRG Corp holds a 20% working interest in the development and is carried in the drilling of the vertical test well.
The Company reported a net loss of $403,150 or $0.438 per common share for the six month period ended June 30, 2014 compared to a $575,026 net loss or $0.646 per common share for the six month period ended June 30, 2013.
On May 12, 2014, FINRA announced the Company’s declared special dividend to qualified shareholders holding a minimum of 100,000 common shares. The dividend consisted of one (1) Series "E" Preferred Share to qualified shareholders of record at 4/28/2014 for each 100,000 shares of common stock held. Each Series "E" Preferred converts to common shares at par - $0.00001. Shares of Series E Preferred Stock may not be converted into shares of Common Stock for a period of: a) six (6) months, if the Company voluntarily or involuntarily files public reports pursuant to Section 12 or 15 of the Securities Exchange Act of 1934; or b) twelve (12) months if the Company does not file such public reports. The Series E Shares have a face value of $2.50 per share and do not have voting rights. At June 30, 2014 there were 183,969 Series "E" Preferred Shares outstanding.
The Company will need additional capital to facilitate its acquisition and development activities and as part of the Company’s growth Strategy, we plan to offer a private placement of up to 1,000,000 shares or $2,500,000 of our Series "B" Preferred Shares at a price of $2.50 per share. This announcement is for informational purposes only and is not a solicitation or offer to sell the securities represented by our Series "B" Preferred Shares. The securities will be offered only to accredited investors via a written offering circular and only in jurisdictions where the sale is allowed. The Series "B" and Series "E" share the same attributes in that a share of either is convertible into 100,000 shares of the Company’s Common Stock, have liquidation rights and are non-voting.
Effective June 23, 2014 the Company effectuated a reverse stock split comprised of one share of newly issued common stock for each 20,000 shares of common stock held as of the effective date. After the reverse split the Company now has 919,828 common shares outstanding.
For more information, please visit http;//1stnrg-corp.com,
Forward-looking statements in this release are 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 1st NRG Corp. believes 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.
(713) 654 4009
SOURCE: 1st NRG Corp.
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