PLANO, TX -- (Marketwire) -- 07/18/12 -- Globalgroup Investment Holdings, Inc. (PINKSHEETS: GIHI) announced today that its subsidiary Sovereign Oil Corp has reached an agreement with Avenill Ventures, LLC to acquire a 50% working interest in up to 10 oil and gas wells in Kansas.
Under the terms of the acquisition of the leases, the Company shall pay one hundred and fifty thousand dollars ($150,000) for a fifty-percent (50%) working interest in the 10 O&G wells.
The JV plans to rework 10 oil wells by the end of 2012. The JV expects that cost of the rework and re-drilling to be approximately $30,000 per oil well.
Fred Rackers, President of Globalgroup Investment Holdings, Inc., stated, "This JV and the secondary recovery drilling in Kansas oilfields is a great opportunity for GIHI and our subsidiary Sovereign Oil Corp. The JV allows the company to diversify our holdings which contains the IT service industry division and now will involve our subsidiary O&G company into the beginning strategic stages of developing Sovereign's natural resource properties."
Upon completing the re-works and drilling as needed on the 10 JV wells, GIHI's petroleum division expects annual revenues of approx $300,000.
About Globalgroup Investment Holdings, Inc.
Globalgroup provides a viable online shopping alternative for fiscally challenged consumers by offering quality name brand products at affordable prices, regardless of household income, through credit alternatives and time-payment options. Globalgroup also offers technology solutions such as GlobalLOK that address the computer payment collection challenges associated with rent to own, pay as you go and no-credit-check computer markets, and in other industries where remote PCs and laptops are deployed. Sovereign Oil, a wholly owned subsidiary, has its emphasis on oil and gas exploration, drilling, and well completion.
Notice Regarding Forward-Looking Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Actual results could differ from those projected in any forward-looking statements due to numerous factors. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
Globalgroup Investment Holdings, Inc.
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