Infinity, Inc. Closes the Partial Sale of Oilfield Service Assets for $4.1 Million Approximately $2.4 Million to be Available for Capital Expenditures and Other Uses DENVER and CHANUTE, Kan., Sept. 16 /PRNewswire-FirstCall/ -- Infinity, Inc. (NASDAQ:IFNY) today announced that its wholly-owned oilfield services subsidiary, Consolidated Oil Well Services, Inc. ("Consolidated"), has closed the previously announced transaction to sell a portion of its assets to Quest Resource Corp. (OTC:QRCP), an exploration and production company and Consolidated customer, for $4.1 million in cash. After repayment of debt secured by the divested assets and provision for transition costs, Consolidated realized approximately $2.4 million in net cash proceeds. The net cash proceeds will be available for capital expenditures and other general corporate purposes. The divested assets consist of 37 oil field service trucks, 13 trailers, real estate and other support equipment, vehicles and inventory. During the first eight months of 2004, Consolidated generated revenue in excess of $8.5 million, of which Quest represented approximately 15%. During the same period, the Chanute yard generated revenue in excess of $2.5 million, of which Quest represented less than 50%. The remaining Chanute revenue related to services provided to other customers, most of which management believes it should be able to retain. Consolidated plans to use a portion of the divestiture proceeds to relocate the Chanute yard operations to a yard in nearby Thayer, Kansas (approximately 10 miles south) and expects to service such customers from the Thayer, Eureka, and Ottawa, Kansas yards as well as the Bartlesville, Oklahoma facility. Both the Thayer and Eureka yards were acquired in April 2004 as part of the $1.2 million Blue Star Acid Services acquisition. The sale agreement contains terms which protect Consolidated from competition with Quest, or its successors, for a period of five years after closing in Kansas, Oklahoma, Colorado, Missouri, Iowa, or Wyoming. In addition, the agreement contains terms that grant Consolidated a "right-of- first refusal" for a period of three years, during which it may match any offer to buy the divested assets from Quest or its successors. Management's Comments Stanton E. Ross, Infinity President and Chief Executive Officer, said: "We are pleased to have raised $2.4 million of net cash proceeds that can be deployed in the near future for debt retirement, capital expenditure projects -- including continued drilling in the Rocky Mountain region and initial drilling in the North Texas region -- and for other general corporate purposes. The loss of revenues from Quest, which had associated operating margins that were below average for Consolidated, reduces our 2004 oilfield service revenue guidance to a range of between $12.5 million and $14.0 million, as compared to a range of $13 to $15 million prior to the transaction." About Infinity, Inc. Infinity, Inc., through its wholly-owned subsidiaries Infinity Oil & Gas of Wyoming, Inc. and Infinity Oil and Gas of Texas, Inc., is an independent energy company engaged in the exploration, development and production of natural gas and oil and the operation and acquisition of natural gas and oil properties. The Company's current operations are principally focused on the development and expansion of its producing Wamsutter Arch (Pipeline) project and emerging Labarge coal bed methane project, both of which are located in the Greater Green River Basin in southwest Wyoming. Infinity Oil & Gas of Wyoming also holds exploration and development rights in the Sand Wash and Piceance Basins principally in northwest Colorado. Infinity Oil and Gas of Texas holds leaseholds in the Fort Worth Basin of Texas. Infinity, Inc. provides oilfield services through its wholly-owned subsidiary, Consolidated Oil Well Services, Inc., with operations principally focused in the Mid- Continent region. The Company's common stock is listed on the NASDAQ National Market under the symbol "IFNY." Forward-Looking Statements This press release includes statements that may constitute "forward- looking" statements, usually containing the words "believe," "estimate," "project," "expect," "plan," "should" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Forward-looking statements in this press release include statements regarding the planned use of net cash proceeds from the sale of the Chanute yard, the ability of the Company to retain its existing Chanute customers other than Quest, and the anticipated level of oilfield service revenue during the remainder of 2004. Factors that could cause or contribute to such differences include, but are not limited to the loss of existing customers or business due to the divestiture, decreases in the prices of oil and gas, operating risks, continued acceptance of the company's oil field services in their marketplace, weather conditions at oilfield service jobs, costs of supplies and services used by the Company in its businesses, and other risks described under "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2003 and in the Company's periodic reports filed with the Securities and Exchange Commission. You can find the Company's filings with the Securities and Exchange Commission at http://www.infinity-res.com/ or at http://www.sec.gov/. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. For further information please contact: Stanton E. Ross, President/CEO, +1-620-431-6200, or James W. Dean, Vice President, Strategic & Corporate Development, +1-720-932-7800, both of Infinity, Inc. DATASOURCE: Infinity, Inc. CONTACT: Stanton E. Ross, President/CEO, +1-620-431-6200, or James W. Dean, Vice President, Strategic & Corporate Development, +1-720-932-7800, both of Infinity, Inc. Web site: http://www.infinity-res.com/

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