Business
Cantex Energy Corp., to raise $500,000 in Private Placement at $0.50 per share and agrees to farm out 1/4 of its interest in the Big Canyon Ranch Project.
Cantex Energy Corp., to raise $500,000 in Private Placement at $0.50 per share and agrees to farm out 1/4 of its interest in the Big Canyon Ranch Project..
About this update from Arkose Energy Corp.
[{"type":"text","content":"San Antonio, TX, April 19, 2006 / Cantex Energy Corp., (Pink Sheets-CTXE) is pleased to announce that the Board of Directors has authorized an equity financing of $500,000 through a non brokered private placement of its securities to a private investor. The financing is expected to be comprised of 1,000,000 shares of restricted common stock at the price of $0.50 per share and is expected to be completed within ten business days.\r\n\r\nIn addition, management is please to announced today that it has entered into an agreement with the same private investor to farm out 1/4 of its interests acquired pursuant to its Participation Agreement with Big Canyon Energy LLC (\"\"BCE\"), a Texas limited liability company, for the right to participate in the exploration and development of a total of Forty Eight Thousand Six Hundred and Forty-Four (48,644) acres of land located in Terrell County, Texas. \r\n\r\nThe Farm-Out Agreement calls for the Investor to pay 30% of Cantex's own working interest cost in order to earn a 25% working interest in the play.\r\nThe placement is designed to strengthen the Company's balance sheet and is expected to be used to finance the Company's upcoming capital expenditures including its share of the Big Cannon Geophysical operation that shall include up to 40 miles of seismic activity. The Geophysical work will be operated by Providence Technologies Inc. that has over 25 years of experience in the area. In addition, Providence Technologies Inc., has designed and licensed to BCE a three dimensional (3-D) and Two Dimensional (2-D) swath Seismic imaging proposal for the Project designed to extend the Val Verde Seismic Imaging Methodologies through the Big Canyon Project area. Permitting and surveying is now complete and the seismic crews will commence a forty day scheduled shoot next month.\r\n By way of background, the Project is located in the sparsely explored portion of the prolific Val Verde Basin and is located approximately 15 miles SW of the estimated leading edge of the Ouachita overthrust and another 15 miles NE of the axis of the Val Verde Basin. The project is mapped on the basis of available well control and reprocessed seismic data, identifying four prospects with productive potential for natural gas and condensates. Including the Ouachita thrust, the Wolfcamp Sands, the thrusted Strawn play and the...