CALGARY, Jan. 24 /PRNewswire-FirstCall/ -- California Oil & Gas Corporation (OTC.BB - COGC) ("COGC") has executed a Letter of Intent with Consolidated Beacon Resources Ltd. ("Beacon") to acquire the majority of their assets in the San Joaquin basin in Southern California for a combination of cash, COGC common shares and warrants.
This acquisition will increase COGC's interest in the Bakersfield area of the San Joaquin Basin. Included in the acquisition are interests in oil and gas leases within the 35.2 square mile seismic survey recently completed with partners in the East Slopes Project. There are additional leases in the East Slopes North Area as well as a portion of the additional acreage acquired jointly with COGC as announced November 20, 2007.
Total consideration to Beacon will be CDN$1,250,000 in a combination of cash, common shares, and warrants of COGC. The effective date of the proposed transaction is February 1, 2008, with closing anticipated March 10, 2008, or such other date as agreed by the parties. The offer is subject to approval by the regulatory authorities having jurisdiction, approval of the final Purchase and Sale Agreement by the boards of directors of both COGC and Beacon, and by the shareholders of Beacon.
On Behalf of the Board (signed) John G. F. McLeod, President Forward Looking Statements
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analysis and on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Forward-looking statements in this news release include statements about the Company's belief that the Seismic survey will be completed before November 30, 2007 with processing and interpretation to follow, that the drilling targets should be relatively inexpensive to drill, that drilling can commence in the first quarter of 2008. The Company's actual results may differ materially from those anticipated in these forward looking statements due to any of a number of factors beyond the Company's control. These risks and uncertainties include, among other things, the risks that are inherent in oil and gas exploration and otherwise inherent in the Company's operations. These and other risks are described in the Company's Annual Report on Form 10-KSB and other filings with the Securities and Exchange Commission, which can be viewed at http://www.sec.gov/.
