TORONTO, ONTARIO -- (Marketwire) -- 08/08/11 -- Geo Finance Corporation (PINK SHEETS: GEFI) is pleased to announce that its re-work of well # 2 has been successful. The Company has been informed by the well operator that in addition to producing oil, there has also been an initial production of gas from this well as was experienced in Well # 1 (please refer to company press release August 4, 2011).
The Company's operator is monitoring the amount of gas produced and will arrange for the delivery and sale as it is warranted as the operator is doing for Well # 1
'We are pleased with the progress our operator is making even with the extreme temperatures which have necessitated operating at night when the temperatures are lower and the risk of damaging the equipment is reduced,' stated John M. Arnold, CEO of GEFI. 'As we projected we are receiving cash flow from our first two wells which were reworked as oil wells. Gas flow from these first two wells is an added bonus. We are monitoring the production which should stabilize in the next 30 days or so.'
The operator estimates wells Number 1 and 2 should have a useful economic life of approximately fifteen years.
Arnold also said that 'We continue to work closely with our operator and are comfortable that the results from reworking of these wells is supporting our revenue model and strategies.'
In this acquisition Geo Finance Corp acquired 34% working interest in the Medlin Field, an estimated 500 acre stacked gas and oil sands in Young County, Texas owned by McDermett Operating Co. and Sundial Resources Inc. (private Texas corporations of Graham, Texas).
About Geo Finance Corporation: Geo Finance Corporation is a Florida entity established to develop and invest in energy related projects including waste to energy, geothermal collection fields, natural gas and petroleum production. The administrative office is based in Toronto, ON, Canada.
SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS
Statements in this document regarding the Transaction, the expected timetable for completing the Transaction, benefits and synergies of the Transaction, future opportunities for the company, expectations regarding the value and benefits of the Transaction and any other statements about Geo Finance Corporation's managements' future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable securities laws. Any statements that are not statements of historical fact (including statements containing the words 'believes,' 'plans,' 'anticipates,' 'expects,' estimates and similar expressions) should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including, but not limited to: the ability of the parties to consummate the Transaction and satisfy the conditions thereunder; the ability to obtain, the impact of any actions taken by any other party to complicate, delay or prevent the transaction and the ability to produce commercially viable quantities of gas on oil from the Medlin Field. Except as required by applicable law, Geo Finance Corporation disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this document.