Business
LIG Assets, Inc. Announces Initial Agreement to Finance a Drilling Program on the Company's Nevada Oil Lease
LIG Assets, Inc. Announces Initial Agreement to Finance a Drilling Program on the Company's Nevada Oil Lease.
About this update from Lig Assets, Inc.
[{"type":"text","content":"\nDALLAS, Sept. 18, 2014 (GLOBE NEWSWIRE) -- LIG Assets, Inc. (OTCPK:LIGA) today announced an initial agreement in the form of a Letter of Intent with a potential funding partner under which the Company would receive financing for drilling on its 36,000 acre oil lease in Nevada. Geological reports for the area suggest the potential for massive oil reserves, although reserves on the property have not yet been proven.\n\n\tUnder terms of the agreement, the financing partner would provide up to $10 million to complete each well on the Nevada oil lease. Based on the success of the initial two wells, the agreement calls for the financing partner to provide additional capital for 3 wells to be drilled every 60 days on the property. If the Company hits two dry holes, the partner has the option to cancel the financing agreement.\n\n\tThe execution of the Letter of Intent triggered a period of due diligence, which will include inspection of the property by the potential financing partner. Assuming the due diligence results are acceptable to both parties, a Definitive Agreement is expected to be executed within the next 30 days, at which time additional details of the financing are expected to be disclosed.\n\n\t\"We are pleased to announce this letter of intent for a drilling program on our Nevada property, especially since the structure of the anticipated financing would be non-dilutive to holders of the Company's common stock,\" said Dennis Hopkins, president of LIG Assets, Inc. \"Our targeted financing partner is planning on joining us on a visit to the proposed drilling site in early October after which we hope to move forward to a Definitive Agreement as soon as possible.\"\n\n\tLIG Assets, Inc., holds the Nevada property through its recent merger with West Coast Partners, LLC and CP Resources, LLC. After drilling on the property has commenced, the Company also intends to begin the process of proving up the reserves. \n\n\tAbout LIG Assets, Inc.\n\n\tIn September 2014, LIG Assets, Inc. based in Dallas, TX, a Company focused on residential and commercial real estate, merged with West Coast Partners, LLC and CP Resources, LLC that are also based in Dallas. West Coast Partners and CP Resources are focused on oil and gas exploration and production. These entities currently have over 36,000 acres under lease in Nevada and Texas...