First Colombia Gold Corporation of Memphis, Tennessee recently announced its intent to construct a pipe threading facility in Albany. The report was published last Tuesday, August 19 via a press release in the Wall Street Journal.

The release states, First Colombia Gold announced plans to construct a pipe threading facility at its oil offices in Albany. This facility is going to be constructed on land already owned by the company and will allow the company to supply its own drill pipe to support drilling and exploration. In addition, First Colombia will also produce enough product to sell into the broader market.

In July, also in a press release in The Wall Street Journal, FCGC announced it had acquired $4.6 million in hard assets from Kentucky-based SWO and ISM, LLC, Hein Oil Co., Inc. and Hein Oil Well Services, LLC. The acquisitions, according to the report on July 22, was finalized on July 21 and represents 100 percent of the total assets acquired through the acquisition.

A local person affiliated with Hein Oil Company told the Clinton County News this week that he couldn’t confirm or deny the plans for the new pipe threading facility, but he did confirm that the local firm had been dealing with First Colombia Gold Corporation.

The Hein Oil Company office and facility is located just west of Albany at the intersection of KY 1590 and Copeland Drive, across the road from Gaddie Shamrock.

CEO Dr. Robert Gates stated, “This is truly an exciting expansion for our company. Everyone in this business knows how rapidly drilling pipe has increased in price, and this will dramatically lower the cost to our company, as well as create an additional revenue stream.”

Company President Clarence Parks stated, “From the moment we completed this acquisition, our goal was to generate new streams of revenue to support our plans for aggressive growth. This new facility is the realization of that goal, and it is our desire to continue to be a major force within this region.”

Dr. Gates continued, “There is a tremendous market for drilling pipe in the oil and gas sector. Drilling pipe is becoming scarce, and pricing is becoming more and more burdensome for small and medium size operators. We intend to be a strong competitor in that market, and by our estimates, this expansion could produce $5 to $7 million in annual revenue for the company.”

First Colombia Gold plans to begin construction in the third quarter, and the company expects to have the facility fully operational by the beginning of 2015.

In July, also in a press release in The Wall Street Journal, FCGC announced it had acquired $4.6 million in hard assets from Kentucky-based SWO and ISM, LLC, Hein Oil Co., Inc. and Hein Oil Well Services, LLC. The acquisitions, according to the report on July 22, was finalized on July 21 and represents 100 percent of the total assets acquired through the acquisition.

A brief summary of this acquisition includes land, leases, vehicles, equipment and bonds that total $4.6 million in hard assets.

Parks stated, “In addition to the assets acquired, I am pleased to announce that we have also acquired 19.5 percent equity interest in these three companies, and that will provide a substantial boost in revenue, not only from production of oil from these companies, but from the services they provide. We have the personnel to offer these services into the market. By retaining existing personnel, we now have the instant ability to put these acquired assets to work. We intend to roll out a menu of services, including acidizing, cement work, completion, drilling, and a host of other services that will provide cash flow and an opportunity for multiple revenue streams for the company.”

Dr. Gates stated, “The land leases attained through this agreement also include a wealth of oil reserves that remain untapped. We fully expect, according to the latest survey, that there could be nearly $200 million in proven oil reserves that these leases could yield. This is an incredible asset to the company. Additionally, we intend to do an aggressive leasing program to extend our acquired acreage and the number of reserves held by the company.”

First Colombia Gold is a capital company focused on acquiring, developing and advancing natural resource, energy and real estate projects…with its model to acquire undervalued assets combining potential for building assets values and cash flow through leverage to improved operational efficiencies and development.