HOUSTON, May 23 /PRNewswire-FirstCall/ -- VTEX Energy, Inc. (OTC:VXEN) (BULLETIN BOARD: VXEN) announced that it will contribute its wholly owned subsidiary, Viking International Petroleum, to US Energy Overseas Investments, LLC (Overseas), a subsidiary of U. S. Energy Systems, Inc. (NASDAQ:USEY), in exchange for a Participating Convertible Preferred (PCP) interest entitling VTEX to receive 10% of the net cash flow of Overseas and at VTEX's option to convert into 1.9 million common shares of USEY. The option to convert may be exercised at any time after three years or if USEY shares trade above $11.00. VTEX will also receive five year warrants to purchase 500,000 common shares of USEY at prices of $8.00, $9.00 and $10.00 per share. Upon making the contribution, VTEX will reduce its debt by approximately $850,000.
"This is a significant step forward for the Company and USEY to effect its previously announced financing initiative and should allow VTEX to realize value for overseas assets acquired less than one year ago," said Stephen Noser, President.
VTEX Energy, Inc. is a Houston based company primarily engaged in the acquisition, development, and production of natural gas and crude oil.
This report includes "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. The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, and the impact of competitive services and pricing and general economic risks and uncertainties.
For more information contact investor relations: VTEX Energy, Inc. at 713-773-3284. DATASOURCE: VTEX Energy, Inc.
CONTACT: investor relations of VTEX Energy, Inc., +1-713-773-3284
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