SEATTLE, Sept. 10, 2010 (GLOBE NEWSWIRE) -- GeoBio Energy, Inc. (Pink Sheets:GBOE) ("GeoBio") is pleased to announce an agreement in principle to close on the purchase of Magna Energy Services ("Magna"). GeoBio is planning to complete the transaction on or about September 15, 2010. After closing, satisfaction of certain debt obligations will be required. At closing, Magna will become part of GeoBio's operations - adding strong revenues and profits to GeoBio.
Magna, located in Aztec, New Mexico, is a chemical treatment and service company focused on oil and natural gas production improvement in the San Juan Basin shale play area of New Mexico. GeoBio believes the chemical business, when coupled with the proposed acquisition of a civil construction company operating in the Piceance Creek Basin shale play area of Colorado, provides a solid platform for substantial growth.
GeoBio also expects to grow organically by (i) expanding geographically through the existing relationships of its pending business acquisitions and (ii) taking advantage of synergies between the companies' customer bases. Additionally, GeoBio intends to add to these capabilities through multiple key strategic acquisitions, which will add both geographic reach and new capabilities. At present, several additional acquisition opportunities are being evaluated.
"We are excited about the planned closing of the purchase of Magna," said GeoBio's incoming CEO, John Sams, "and we look forward to the successful integration of this established and profitable company into GeoBio and to moving forward with our planned growth strategy."
About GeoBio Energy:
GeoBio Energy's business model emphasizes the acquisition and operation of existing companies in the oil and gas services and energy industry. As oil and gas exploration continue in the face of ever rising demand, preparing and monitoring drilling sites and obtaining peak efficiency and production from existing, aging wells becomes increasingly important. GeoBio believes this to be a significant growth opportunity in its strategy to combine and consolidate companies in the oil and natural gas services sector.
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CONTACT: GeoBio Energy Corporation Investor Relations Joseph J. Malone 786-375-0556 info@geobioenergyinc.com