HOUSTON, TX – June 8 (SEND2PRESS NEWSWIRE) — Lyamec Corp announces that it is in agreement with Grifco (OTC: GFCI) in negotiating on several offers made to Grifco International to either merge or to be acquired. Current offers originating from the United Kingdom, the United States and Libya range from GBP 28 Million British Pounds (USD $49 Million equivalent) to GBP 33 Million British Pounds (USD $59 Million equivalent).
In a statement issued by RG Raymond, interim CEO of Lyamec Corp, “While we regard this as a positive development, we will carefully review our options to ensure the basis of any transaction falls within the parameters of our objectives to effect managerial change at Grifco.” Adding, “We are in agreement that negotiations and settings for a deal will be in the United Kingdom. Clearly, the positive political climate both here and in Libya places an improved position on the options.”
Libya’s highest priority is increasing oil and gas production through the revitalization and overhaul of under-performing oil fields with proven reserves to their previous production levels. Libya’s expanding onshore/offshore exploration and production has created robust demand and a growing market for American oil equipment and services. “The timing to move on Libya with Lyamec was a catalyst for the merger and equity investment overtures. Now that Libya has fully normalized diplomatic relations with the United States; oil prices, oil service companies, and especially oil service companies with a footprint in the Middle East, are at a premium,” stated Jim Dial, President and CEO of Grifco International.
The Global Oil Tools Libya facility in Misurata is strategically located to provide ready access to critical key distribution points from which Global can deliver tools to regional customers on a just-in-time basis. Global’s advantage in North Africa is the ability to provide a localized, fully integrated development, manufacturing and shipping facility over competitors shipping tools from distant distribution centers. “Given the geography of the regions and Lyamec’s approach to the vast opportunities on current Libyan projects; Grifco requires a ‘finesse approach’ to restructuring operations and policies. While some aspects of the negotiations could complicate the chances for closing a deal, the participants should be able to see eye-to-eye for a successful outcome and one has to ask how easily three cultures can collaborate,” stated Ben Gala of American Finance Corp.
In anticipation of the additional volume from Libyan and other customers, Global Oil Tools is within reach of accepting additional orders through recently acquired additional CNC machines and ongoing installations of enhanced order processing and management systems. Global expects this modernization to provide the company with the capacity to rapidly fulfill current back orders and future volume projected from recently reinvigorated oil and gas wells left stagnant in Libya since the mid-1980s. Over the last year, a preponderance of stagnant oil wells throughout the world are under redevelopment, taking advantage of the record rise in oil prices and creating a significant demand for oil and gas well maintenance and overhaul tools, such as those patented and manufactured by Global.
About The Lyamec Group
The Lyamec Group (www.lyamec.com) was established in 1999, to fulfill the existing and expanding demand for U.S. made products as outlined by President Clinton in 1999. The Lyamec Group provides vital assistance in laying unique and integrated platforms with cross-border assets to further streamlining efficient and effective opportunities and solutions.
About American Finance Corp.
American Finance Corp is an investment banking firm that provides support on mergers and acquisitions (M&A), corporate finance, and valuation services. Our products focus predominately on privately-held small- to medium-sized businesses, and on transactions ranging from USD $1 Million to USD $130 Million over a variety of industrial applications. www.americanfinanceco.com
About Grifco International, Inc.
Grifco International (OTC: GFCI / GFCI.pk) is a leading provider of oil and gas services equipment, specializing in the conception, architecture, and development of tools for the coil tubing, wire line, and snubbing industry throughout the United States, China, Mexico, South America, the Middle East and Africa. Grifco holds and owns design rights and manufacturing facilities for producing more than 6,000 products for the oil and gas industry with more than 150 clients, boasting the biggest names in the business, including Halliburton , Exxon Mobil Corp, and Schlumberger. For more information, please visit: www.grifco.org.
Forward-Looking Statements: Certain statements in this release, and other written or oral statements made by the Company, including the use of the words “expect,” “anticipate,” “estimate,” “project,” “forecast,” “outlook,” “target,” “objective,” “plan,” “goal,” “pursue,” “on track,” and similar expressions, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements of the company to be different from those expressed or implied. The Company assumes no obligation and does not intend to update these forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, without limitation: competitive and general economic conditions, adverse effects of litigation, the timely development and acceptance of our products and services, significant changes in the competitive environment, the failure to generate or the loss of significant numbers of customers, the loss of senior management or increased government regulation.
News issued by: The Lyamec Group
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Original Story ID: (1720) :: 2006-06-0608-001
Original Keywords: Grifco International, The Lyamec Group, OTC GFCI, pink sheets, GFCI.pk, American Finance Corp, mergers and acquisitions, Houston, Texas, RG Raymond, Ben Gala, Jim Dial, oil and gas services equipment, specializing in the conception, architecture, and development of tools for the coil tubing, wire line, and snubbing industry The Lyamec Group
The Lyamec Group