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Desert Mountain Energy Closes Acquisition of Kight Gilcrease Sand Unit Oil & Gas Project in Oklahoma
(via TheNewswire) MOUNTAIN ENERGY CORP. (the "Company") (TSX.V: DME) is pleased to annou...
About this update from Desert Mountain Energy Corp.
[{"type":"text","content":"Desert Mountain Energy Closes Acquisition of Kight Gilcrease Sand Unit Oil & Gas Project in Oklahoma(via TheNewswire)\n\n \nMOUNTAIN ENERGY CORP. (the \"Company\") (TSX.V: DME) is pleased to announce the acquisition of the Kight Gilcrease Sant Unit oil and gas project in Seminole County, OK (the \"KGSU\") has closed. Under the terms of the definitive Purchase Agreement dated February 13, 2018, as amended on November 5, 2018, between the Company, Seminole Productions, LLC, an Oklahoma private company (\"Seminole\"), and Desert Energy Corp., the Company's U.S. subsidiary (\"Desert Energy\"), the Company has acquired certain oil and gas interests comprising the Kight Gilcrease Sand Unit. \n\n \n \nIn consideration of the oil and gas interests acquired, the Company is paying (i) cash consideration of US$180,000 of which US$90,000 is payable on closing and US$90,000 is payable within one year thereafter, and (ii) 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\"). 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 value for the Units of U.S. $220,000 at applicable exchange rates. \n\n \n \nBy way of background, the KGSU was permitted and approved by OCC by Order #375263 dated July 19, 1993, as an enhanced recovery project primarily utilizing water-flood secondary recovery operations, in an administrative proceeding which consolidated and unitized all working and royalty interests in the project. It was subsequently acquired by its present owner/operator Seminole in 2003. The KGSU has had historic production estimated at 1,690,240 BO by the OCC and presently has 7 wells on site, one of which is operational. The oil produced is a light sweet crude that varies from 34 API to 43 API gravity.\n\n \n \nThe KGSU comprises an area of approximately 883.7 acres, which is substantially underlain by the Gilcrease Sandstone common source of oil supply. The KGSU leases are located 8 miles S of Wewoka directly astride State Highway 56, in a portion of the S/2 of Section 6, all of Section 7 and the NW/4 of Section 18, T6N R8E Seminole County, Oklahoma. It is not located within an environmentally sensitive...