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Jadela Signs Agreement to Assist in Development of Texas Assets
Jadela Signs Agreement to Assist in Development of Texas Assets Calgary, Alberta CANADA, Aug...
About this update from Decimus Oil Corp.
[{"type":"text","content":"\nJadela Signs Agreement to Assist in Development of Texas Assets\n\nJadela Signs Agreement to Assist in Development of Texas Assets\nCalgary, Alberta CANADA, August 24, 2012 /FSC/ - Jadela Oil Corp. (JOC - TSX Venture), is pleased to announce that it has entered into a purchase sale and exploration agreement (\"PSEA\") with an international public oil and gas exploration and production company (\"IEPC\") to jointly develop, pursuant to the terms of a Joint Operating Agreement, Jadela's Eagle Ford shale mineral rights located in Maverick County, Texas.  IEPC has agreed to acquire an undivided 57.5% interest in 20,985 gross acres (15,209 net acres) of leased mineral rights and optioned mineral rights (\"Option Assets\"), with a further right to increase its interest to an undivided 75% interest.  IEPC will also acquire an undivided 15% interest in the 660 net acres and related assets (\"660 Acre Assets\") that was earned or acquired by Jadela upon drilling the El Indio #1H well.  The salient details of the transaction are as follows: \n* Jadela's wholly owned subsidiary, Jadela Oil (US) Operating LLC (\"Jadela USA\"), will sell a 35% co-ownership interest in the Option Assets for US$1,000,000 which amount will be placed in trust pending satisfaction of conditions.  From the sale proceeds the sum of US$900,000 would be used to pay consideration to acquire certain options.\n* Jadela USA has granted IEPC an option until October 15, 2012 to acquire an additional 17.5% co-ownership interest in the Option Assets for US$500,000.\n* IEPC has entered into an agreement to purchase an undivided 22.5% co-ownership interest in the Option Assets plus a 15% co-ownership interest in the 660 Acre Assets from a company related to Jadela.\n* After the transactions close, and if IEPC does not exercise its option to acquire an additional 17.5% interest in the Option Assets, Jadela USA will retain a 42.5% co-ownership interest in the Option Assets and a 65% co-ownership interest in the 660 Acre Assets. \n* IEPC will be the operator of the Option Assets and Jadela USA will remain the operator of the 660 Acre Assets.\n* Conditions to be removed by September 24, 2012\nJadela has sought out a partner to develop its Eagle Ford assets which has demonstrated that it has the geotechnical capabilities and capital to expl...