Exobox Technologies to acquire 15 oil and gas wells in Ohio

Exobox Technologies has announced that one of its board members has identified and assisted management in entering into a non-binding letter of intent to acquire 15 income producing oil and gas wells in the Clinton and Marcellus Shale region in Ohio from a private oil and gas company. The oil and gas wells have a represented PV10 reserve value of approximately $22.5 million.

The company intends that the cash flow and net worth from the oil and gas assets will assist to further develop the company's software products and technologies, as well as those oil and gas assets being acquired. The parties intend on executing a definitive agreement on or before October 19, 2009.

The non-binding letter of intent contemplates a purchase price of approximately $13.25 million which includes the assumption of existing debt in an amount not to exceed $3 million, as well as the issuance to the seller of a combination of convertible notes, convertible preferred stock and common stock that on a fully-converted basis would not exceed 9.9% of the total shares outstanding of the company.

Kevin Regan, CEO of Exobox Technologies, said: "Upon the closing of the transaction, this will enable Exobox to continue its operations as originally planned. It should provide us critical mass and bring substantial asset value to the company."

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