SEATTLE, Sept. 17, 2010 (GLOBE NEWSWIRE) -- GeoBio Energy, Inc. (Pink Sheets:GBOE) ("GeoBio") made a strategic decision to focus its oil and gas services and chemical business on the acquisition of Magna Energy Services ("Magna") and, accordingly, terminated, as of September 13, 2010, the previously announced H&M Precision Products, Inc. acquisition agreement. GeoBio's management believes that the termination of the H&M agreement will enable GeoBio to direct its efforts toward completing the acquisition of Magna and supporting other proposed acquisition initiatives.
Magna, located in the San Juan Basin shale play area of Aztec, New Mexico, is a chemical treatment and service company focused on improving oil and natural gas production. GeoBio believes the Magna chemical business, when coupled with the other contemplated acquisitions as well as 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 in the oil and natural gas services industry.
"We see significant growth opportunities with Magna," said GeoBio's incoming CEO, John Sams, "and we look forward to both growing our chemical business geographically through the strength, knowledge and leadership of the Magna team and implementing our overall growth strategy."
About GeoBio Energy:
GeoBio Energy's (www.geobioenergyinc.com) 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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