DALLAS, March 28, 2013 /PRNewswire/ -- (OTC PINK: PDGO) and (OTC PINK: ERAO) Vince Vellardita, President of Paradigm Oil and Gas Inc. announced today that Paradigm Oil & Gas and Energy Revenue America signed a definitive agreement to merge certain assets from both companies' by the way of a Stock Share Agreement.
"By combining certain assets of both companies; gives us a much stronger foothold in the Oil & Gas Industry," stated Vince Vellardita, President of Paradigm Oil and Gas Inc., and Energy Revenue America, Inc.
The transaction is closed; Paradigm Oil and Gas Inc.'s management expects to dividend the shares received from ERAO to PDGO shareholders of record as of April 15, 2013.
Now, with the closing of this transaction, both Companies will have wells of Oil & Gas and nearly 3,000 acres of land leases. In addition they also have a technology Company that has contracts to fulfill for oil wells from Oklahoma to Texas.What does this mean for both PDGO and ERAO? Simple: GROWTH and POTENTIAL REVENUE! We believe it will afford us three revenue streams. The first being Oil production, the second being natural gas production and finally, the proven technology from the Centurion which should be highly profitable service based income. Here is the estimated basis in which management is working off is:
Oil Production & Estimated Cost: Revenue estimated at $90 per barrel, lifting cost of about $45 per barrel and net about $45 per barrel. The estimated gross margin for the production of oil is expected to be about 50% depending on commodity market prices. Gas Production & Estimated Cost: Revenue estimated about $3.35 MCF, cost about $2.08 MCF and net about $1.27 MCF. The estimated gross margin for the production of Natural Gas Production is expected to be about 37.9% depending on commodity market prices. Centurion Technology working a 40 hour week at $150 per hour earns about $6,000 per week with estimated operating cost of $2,750 per week, expected to Gross Margin about $3,250 per week without additional services added. "I am thrilled to be working with Vince Vellardita and the Paradigm Oil & Gas team. What they do for the venture; enables me to focus on the development and production of our Oil & Gas Company, which increases Shareholder value and allows me to live my dream of potentially building the one of the largest Oil & Gas Companies in the Mid West," stated Charley Havens, CEO of Energy Revenue America, Inc.