T-Rex Oil, Inc. Announces Closing Of Western Interior Oil & Gas, Inc. Acquisition

BROOMFIELD, Colo., April 8, 2015 /PRNewswire/ -- T-Rex Oil, Inc. (OTC: TRXO) ("TRXO" or the "Company"), an independent energy company with a focus on the Rocky Mountain region announced on Friday March 27, 2015 it completed the previously announced acquisition contract of Western Interior Oil & Gas, Inc. ("WIOG"), a Wyoming corporation through an exchange for 83% of the issued and outstanding stock of WIOG for 7,470,000 restricted common shares of TRXO. The additional 17% of WIOG is being negotiated for 1,530,000 shares and will result in a total of 9,000,000 TRXO shares having been issued. As a result of the transaction, TRXO will assume ownership and operatorship of all of WIOG operated properties and leases in Wyoming.

Key attributes of WIOG properties include the following:

• Approximately 15,895 gross (8,643 net) acres located in Big Horn, Carbon, and Park Counties, Wyoming.
• Approximately 54% of the acreage is operated, and 46% is non-operated.
• Essentially all of the acreage is held by production from existing wells and production units with net revenue interest greater than 75%.
• Average net daily production during the fourth quarter of 2014 of approximately 50 BOE per day (approximately 98% oil).

Net proved developed producing ("PDP") oil and natural gas reserves of approximately 174,000 BOE (approximately 100% oil) as of December 31, 2014, based on an independent reserves analysis prepared by Netherland Sewell. Notably, no proved developed non-producing ("PDNP") nor proved undeveloped ("PUD") reserves have been assigned to these properties.

The WIOG assets strategically place TRXO in three basin resource plays in Wyoming. The acquired acreage increases TRXO's total acreage position in Wyoming at March 31, 2015 to approximately 34,455 gross (19,579 net) acres, providing TRXO with an increased operational footprint throughout the northern Rockies.

Pursuant to the final terms of the transaction, TRXO assumed debt obligations of approximately $650,000. The transaction makes WIOG shareholders one of TRXO's largest shareholder groups with approximately 48% ownership when all shares are exchanged. Two directors from the WIOG shareholder base will be appointed to the TRXO Board within the next 30 days.

Don Walford, Chairman and CEO of the TRXO, stated, "We are pleased to have successfully closed this acquisition with WIOG shareholders, and we are excited to expand our prospect areas in prime Wyoming resource plays with some proven production. We look forward to having Eckhardt Huber-Flotho and Werner Georg Biberacher join our board and combining the key employees of WIOG into TRXO, all of whom add expertise and deep industry experience to our own experienced staff. We believe together we can continue to build focused industry players in the Northern Rockies in Wyoming."

Based on March 30, 2015's market price of $2.56, the 9,000,000 shares have a market valuation of approximately 23,000,000

About T-Rex Oil, Inc.

T-Rex Oil, Inc. is an energy company focused on acquiring, exploring, developing and producing oil and natural gas properties predominately in the central and western United States. The Company's executives have extensive experience in managing oil and gas properties. T-Rex Oil, Inc. has acquired producing wells, leases and water disposal properties in Wyoming, Nebraska, and Utah and is actively pursuing other opportunities in Colorado. The Company's goal is to build steady, sustainable growth of its inventory of oil and gas properties. T-Rex Oil, Inc. is headquartered in Broomfield, Colorado. More information can be found at www.t-rexoilinc.com.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended. Actual results and future events could differ materially from those anticipated in such statements, and such forward-looking statements may not prove to be accurate. These forward-looking statements involve certain risks and uncertainties, including, but not limited to, the following risks related to financial and operational performance: the Company's ability to execute its business plan; changes in prices and demand for oil and natural gas prices; difficulties related to producing oil and natural gas; its ability to make acquisitions; its ability to integrate acquisitions, including the WIOG acquisition; availability of sufficient capital to execute its business plan; and other factors which could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. For further discussions of risks and uncertainties, you should refer to our SEC filings.  T-Rex undertakes no obligation and does not intend to update these forward-looking statements to reflect events occurring after the date of this press release, except as required by law, including the rules and regulations of the SEC. Any forward-looking statements speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.

Contact: Paige Coutts, [e-mail]

 

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SOURCE T-Rex Oil, Inc.

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