PHOENIX, AZ--(Marketwired - December 29, 2014) - Core Resource Management, Inc. (CRMI) announces the acquisition of the outstanding equity securities of Nitro Petroleum has been become effective as of December 19, 2014, pending a shareholder meeting to be conducted in January. The approximately $14 million transaction was initially announced Sept. 4, 2014. Nitro shareholders will receive 10.5 shares for every 1 share of Core common stock. Beginning in 2014, Core had over $4 million in debt with under $2 million in assets. Today, assets have grown to over $13 million and debt has fallen to around $1.5 million. Late 2014 saw the acquisition of two private companies, Royal Petroleum and White Stone Resources, and the completion of the merger with Nitro Petroleum. These acquisitions were completed almost entirely with equity, keeping debt contained at the most efficient levels to operate and thrive in these current market conditions.
The management team of Clark and Nuciola is being fortified now that the merger is completed with Alex Campbell as director. Mr. Campbell has been part of the oil and gas industry since 1980. He has held director positions at multiple public and private companies. Most recently he and his partners sold their company, Enduring Resources, LLC to American Energy for $2.5 billion. While Phillip Nuciola will continue being the architect of Core's strategic development and Chairman of the Board, James Clark will continue on his tactical focus of completing lucrative acquisitions.
Chairman Phil Nuciola said, "We believe this is the first step in securing strong, recurring revenue growth and earnings for future shareholder value." While President and Interim CEO, James Clark, expressed his thoughts on the merger with "The Nitro merger occurs at the fortunate time of lower oil and gas prices. This creates additional value for Core because of our low debt levels and advanced technology that many of our competitors lack. Valuations in the industry are low and are attractive for us to continue to make acquisitions. Going forward, we intend to capitalize on these conditions and increase our asset base of producing oil and gas properties."
About the Company: Core Resource Management is a Phoenix-based oil & gas company engaged in the acquisition of existing oil & gas production in partnership with established oil & gas operators in Texas and the Southwest. The Company does not currently engage in direct exploration but will acquire positions of up to 50% in current oil & gas production from well-established operators, seeking from time to time, to sell a percentage of their existing production in order to recycle their capital into new leases and wells. Management believes it can maximize value for its shareholders while also negotiating fair and reasonable valuations for its drilling partners.