DALLAS, Sept. 18, 2014 (GLOBE NEWSWIRE) -- LIG Assets, Inc. (OTCPK:LIGA) today announced an initial agreement in the form of a Letter of Intent with a potential funding partner under which the Company would receive financing for drilling on its 36,000 acre oil lease in Nevada. Geological reports for the area suggest the potential for massive oil reserves, although reserves on the property have not yet been proven.
Under terms of the agreement, the financing partner would provide up to $10 million to complete each well on the Nevada oil lease. Based on the success of the initial two wells, the agreement calls for the financing partner to provide additional capital for 3 wells to be drilled every 60 days on the property. If the Company hits two dry holes, the partner has the option to cancel the financing agreement.
The execution of the Letter of Intent triggered a period of due diligence, which will include inspection of the property by the potential financing partner. Assuming the due diligence results are acceptable to both parties, a Definitive Agreement is expected to be executed within the next 30 days, at which time additional details of the financing are expected to be disclosed.
"We are pleased to announce this letter of intent for a drilling program on our Nevada property, especially since the structure of the anticipated financing would be non-dilutive to holders of the Company's common stock," said Dennis Hopkins, president of LIG Assets, Inc. "Our targeted financing partner is planning on joining us on a visit to the proposed drilling site in early October after which we hope to move forward to a Definitive Agreement as soon as possible."
LIG Assets, Inc., holds the Nevada property through its recent merger with West Coast Partners, LLC and CP Resources, LLC. After drilling on the property has commenced, the Company also intends to begin the process of proving up the reserves.
About LIG Assets, Inc.
In September 2014, LIG Assets, Inc. based in Dallas, TX, a Company focused on residential and commercial real estate, merged with West Coast Partners, LLC and CP Resources, LLC that are also based in Dallas. West Coast Partners and CP Resources are focused on oil and gas exploration and production. These entities currently have over 36,000 acres under lease in Nevada and Texas with geological reports that demonstrate the potential for massive reserves.
LIG Assets, Inc. still plans to expand its residential portfolio and increase commercial property transactions. The real estate division will continue to operate as a separate subsidiary under LIG Assets. LIG Assets, Inc. trades on the pink sheets under the ticker symbol "LIGA". For additional information, please visit LIG Assets corporate website: www.ligassetsinc.net.
This press release may contain forward-looking statements. The words "believe," "expect," "should," "intend," "estimate," "projects," variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not a forward-looking statement. These forward-looking statements are based upon the Company's current expectations and are subject to a number of risks, uncertainties and assumptions. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ significantly from those expressed or implied by such forward-looking statements are risks that are detailed in the Company's filings, which are on file at www.OTCMarkets.com.
CONTACT: LIG Assets, Inc. 1700 Pacific Ave. Suite 2600 Dallas, TX 75201 (214) 760-1000 Email: firstname.lastname@example.orgSource:LIG Assets, Inc.