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CGrowth Capital, Inc. Closes Second Transaction on Wyoming Oil Project
CGrowth Capital, Inc. Closes Second Transaction on Wyoming Oil Project.
About this update from Cgrowth Capital, Inc.
[{"type":"text","content":"\n \n \n CGrowth Capital, Inc. Closes Second Transaction on Wyoming Oil Project\n \n \nCGrowth Capital, Inc. Closes Second Transaction on Wyoming Oil Project\n\nTransaction Increases Working Interest in Well to 100%\n\n \n SILVERDALE, WA--(Marketwired - Nov 26, 2013) - CGrowth Capital, Inc. (OTC Pink: CGRA) (the \"Company\") is pleased to announce that it has closed escrow on an additional 50% Working Interest in a producing oil well located on the Company's recently purchased West Salt Creek oil project. The purchase includes the active well with the remaining current production along with the associated fixtures, pumps, and tanks for the current field operation. \n \"This second closing wraps up the initial targets on the main property, with a third segment being negotiated that we hope to secure this year,\" stated Bill Wright, CEO of CGrowth Capital, Inc. \"One of the problems that our predecessor was faced with was the fractional interests by multiple parties on the site. This created a difficult situation for them to move forward with financing and project plans. This closes out the fractional interests on the overall site and this particular well, enabling us to move forward with financing and work over plans.\" \n Mr. Wright continued, \"We are in a good position with respect to the existing wells on the site. Those that were either not producing or were marginally productive are now under contract to be worked over by a third party at no outward cost to the Company. With respect to this particular well, it was important for us to wrap up the Working Interest prior to redevelopment and increased production. We will now be working to close out a financing arrangement that will include a work over that projects overall production to significantly increase.\"\n The Effective Date of the purchase has been tied to the original Purchase and Sale Agreement effective September 30, 2013 and will be reflected in the Company's fourth quarter financials. The purchase price for the well interest and equipment is $800,000. The Company paid for the acquisition through the issuance of a) $750,000 in Preferred A stock (which amounted to 75,000 shares of Preferred A stock valued at $10.00 per shares). The shares have a two year lock up, may be called by the Company during that time period at the stated price plus a 6% cumulative annual pr...