Platinum said that the Lothian assets acquired consist of oil and gas properties located in New Mexico and include over 1 million barrels of oil equivalent (boe) of proved reserves.
In addition to the Lothian acquisition, Platinum Energy also announced that it has recently acquired a 50% working interest in the La Rosa field in Refugio County, Texas, for $5 million in cash, and entered into a joint development agreement with Mantle Resources, an operating company in Houston, Texas.
Tim Culp, chairman of Platinum Energy, said: These assets are a good fit with the current asset base of Platinum. At an acquisition cost of $6 per barrel of proved reserves, the acquisition represents a very good value.
Barry Kostiner, CEO of Platinum Energy, said: We are off to a very aggressive start, acquiring assets and initiating our drilling program with a focus on shareholder value. Through a combination of acquisitions and accelerating development, we believe that we can achieve our goal of significantly increasing net production by the end of 2008.
