HOUSTON, Oct. 31 /PRNewswire-FirstCall/ -- VTEX Energy, Inc. (OTC Pink Sheets: VXEN) announced a progress milestone achieved through the filing by U.S. Energy Systems, Inc. (NASDAQ:USEY) with the Securities and Exchange Commission of a Form 8-K providing USEY management's initial estimates of the pro forma effects on its financial results and financial position resulting from USEY's recently announced closing of the UK North Yorkshire natural gas and electrical power generation project. USEY reported that according to its initial pro forma financial estimates, USEY's total assets and total stockholders' equity increased by $204.1 million and $19.6 million, respectively, as a result of the North Yorkshire transaction. USEY's initial pro forma financial estimates reflect total assets and total stockholders' equity as of June 30, 2006 of $371.2 million and $32.0 million, respectively, compared with USEY's reported total assets and total stockholders' equity at the same date of $167.1 million and $12.4 million, respectively.
In August 2006 VTEX exchanged, for 100 Class B Membership Units in a USEY's subsidiary, its then existing ownership interest in the North Yorkshire project comprised of an approximate 26% interest in gas licenses covering approximately 100,000 acres of onshore natural gas properties and mineral rights in North Yorkshire, England. In turn, USEY's subsidiary combined this transaction with several other transactions involving ownership interests in the North Yorkshire project which has resulted in the above gas licenses covering an estimated 62.4 bcf of proved and probable natural gas reserves, a 42 MW distressed gas-fired power plant associated with and located in the vicinity of these natural gas reserves and an electrical power generation sales contract with Scottish Power Energy Management. USEY financed this combined transaction by borrowing $166,335,000, accepting equity contributions from a minority interest of $4,995,000 and contributing the remaining $10,247,000 to complete the $181,577,000 transaction.
VTEX's 100 Class B Membership Units in the USEY subsidiary are convertible after the earlier of 3 years or the attainment of defined financial results into up to 1,900,000 shares of common stock of USEY. VTEX also received warrants to purchase 500,000 shares of common stock of USEY at prices ranging from $8 to $10 per share with an expiration date of August 7, 2011.
Marshall Smith, VTEX Chairman and Chief Executive Officer, said: "VTEX is very pleased to have teamed with USEY to complete the combination of the assets and operations comprising the North Yorkshire project. We share the view of USEY management that USEY's initial pro forma estimates demonstrate immediate value for USEY's shareholders and that these assets have significant upside potential. We are enthusiastic about the opportunity to participate in USEY's future successes in this project as well as its other operations involving 'clean and green' energy assets." About VTEX Energy, Inc.
VTEX Energy, Inc. is a Houston, Texas based independent oil and gas exploration and production company engaged in the acquisition, development and production of oil and natural gas reserves. The Company currently has two properties, Bateman Lake Field located in St. Mary's Parish, Louisiana, and Mustang Island Field located offshore Kleberg County, Texas with estimated future net cash flows (discounted at 10%) from proved oil & gas reserves of approximately $27.2 million. These reserves are concentrated in two fields, the Bateman Lake field in St. Mary Parish, Louisiana and the Mustang Island 818-L field located offshore in Texas State waters. For more information contact investor relations: VTEX Energy, Inc. at 281-445-5880.
This press release 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. DATASOURCE: VTEX Energy, Inc.
CONTACT: investor relations of VTEX Energy, Inc., +1-281-445-5880
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