Brek Energy has paid $12,563 to acquire 2,512,500 common shares of Vallenar's stock and has paid $350,000 to acquire 733,333 preferred shares of Vallenar. Brek Energy's interest is by far the largest outstanding voting block of Vallenar stock. The interest in the preferred shares entitles Brek Energy to a minimum 26% of the voting power of Vallenar that will not be diluted by further issuances of common stock. The preferred shares are convertible into 733,333 common shares at the discretion of Brek Energy. Also, as a shareholder of preferred shares, Brek Energy is entitled to vote as a class on certain extraordinary matters such as a merger or other acquisition.
Gregory Pek, President and CEO of Brek Energy, is the president of Vallenar. Ken Telford, Chief Financial Officer of Brek Energy, is vice president overlooking Vallenar's operations. Cecil Gritz is the chief engineer evaluating the oil and gas opportunities in Texas. Kelton Cloud is the chief geologist for the oil and gas projects. Vallenar has identified several tracts of oil and gas properties in the Rocksprings Prospect and has negotiated leases covering approximately 8,540 acres. The Rocksprings Prospect is located in central Edwards County to the southwest of Rocksprings, Texas, which is approximately 100 miles west-northwest of San Antonio, Texas.
The Rocksprings Prospect is part of the Geronimo Creek Prospect. The Geronimo Creek Prospect is a shallow, heavy oil play within the Cretaceous aged Glen Rose limestone and Travis Peak sandstone. Geologically, the Geronimo Creek Prospect is a north-south oriented, faulted anticline having approximately 75 feet of closure covering approximately 29,500 acres, a resource that could yield a significant amount of recoverable oil if Vallenar's recovery methods prove successful. Vallenar intends to complete a one-to-two well, controlled-situation core test to determine the recovery factor of the oil. Assuming the core test results are favorable, Vallenar's management has recommended that a five-acre pilot program then be implemented to test recovery methods.
Greg Pek, President and CEO of Brek Energy, stated "This being Brek Energy's second venture in the oil and gas business further identifies our goal of establishing Brek Energy as a leading energy company." Brek Energy and its management are taking an active role in the management of Vallenar.
About Brek Energy Corporation
Brek Energy Corporation owns significant interests in emerging non-conventional energy companies and assists in building these companies and their assets to their full potential. Brek Energy Corporation, formerly First Ecom.com Inc., also provides electronic payment solutions through its wholly owned subsidiary, First Ecom Systems Limited. Brek Energy has a national market listing and its common shares trade on the NASDAQ National Market System under the symbol BREK.
For more information, visit www.brekenergy.com contact Brek Energy Corporation at +(852) 2801-5181 or by e-mail at info@brekenergy.com / info@firstecom.com.
Certain statements contained herein are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include significant risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. For a discussion of some of these risks and uncertainties, please refer to the company's SEC filings, which contain additional discussion about those risk factors, which could cause actual results to differ from management's expectations. Brek Energy expressly disclaims any obligation to update the statements contained herein.