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Desert Mountain Energy Amends Terms and Provides Update on Acquisition of the Knight Gilcrease Sand Unit Oil & Gas Project in Oklahoma
(via TheNewswire) Vancouver, British Columbia / TheNewswire / November 22, 2018 - DESE...
About this update from Desert Mountain Energy Corp.
[{"type":"text","content":"Desert Mountain Energy Amends Terms and Provides Update on Acquisition of the Knight Gilcrease Sand Unit Oil & Gas Project in Oklahoma(via TheNewswire)\n \n \nVancouver, British Columbia / TheNewswire / November 22, 2018 - DESERT MOUNTAIN ENERGY CORP. (the \"Company\") (TSX.V: DME) is pleased to provide the following amendment of terms and update on the status of its pending acquisition of the Kight Gilcrease Sand Unit oil and gas project in Seminole County, OK (the \"KGSU\"). The Company entered into a definitive Purchase Agreement dated February 13, 2018, with SEMINOLE PRODUCTIONS LLC, an Oklahoma private company (\"Seminole\"), pursuant to which Desert Energy Corp., its U.S. subsidiary (\"Desert Energy\"), will acquire the KGSU subject to certain conditions (Please see PR of African Queen Mines Ltd. (\"AQ\") dated February 19, 2018).\n\n \n \nUnder terms of the Purchase Agreement, Desert Energy is acquiring all leases covering the KGSU above the Base of the Gilcrease Sand Formation, subject to an aggregate gross overriding carried royalty on hydrocarbon production of 22% payable to various royalty holders (2% of which is payable directly to Seminole). Hence Desert Energy is acquiring a 0.78 Net Revenue Interest in the KGSU. In addition, Desert Energy is acquiring all wells and associated surface and downhole equipment on site, including pumping rigs, piping, storage tanks, supplies, etc., and all rights to any additional hydrocarbon bearing zones which may exist above the Base of the Gilcrease Sand Formation. The underlying leases are extendible year-to-year by maintaining minimal prescribed production levels.\n\n \n \nBy way of Amendment to the Purchase Agreement, the total consideration payable for the acquisition has now been adjusted as follows: (i) the cash consideration in the sum of U.S. $180,000 is now payable one-half on closing and one-half within one year thereafter, rather than all at once following regulatory approvals; and (ii) the Company is issuing a total of 1,440,000 Units at a deemed price of CAD $0.20 per Unit, where each Unit is comprised of one share of Common Stock of the Company (\"Share\") and one Share Purchase Warrant (\"Warrant\"), where each Warrant permits the holder to purchase one Share for a period of 3 years from the date of issuance at a price of CAD $0.30 per Share. This represents a deemed...