Business
Company Announces Revision In The Terms Of 25% Property Purchase From Galaxy
Company Announces Revision In The Terms Of 25% Property Purchase From Galaxy.
About this update from Xxl Energy Corp.
[{"type":"text","content":"\n\n\n\n\nVANCOUVER, BC, Oct. 3 /CNW Telbec/ - Exxel Energy Corp. (\"Exxel\")\n(TSX-V Symbol: EXX) and Galaxy Energy Corporation (\"Galaxy\")(AMEX Symbol: GAX)\nhave renegotiated their prior non-binding letter of intent dated July 31, 2006\nfor the purchase of Galaxy's interest in its unconventional natural gas\nproperties in the Piceance Basin of Colorado.\nUnder a new non-binding letter of intent signed on September 28, 2006,\nExxel's wholly-owned subsidiary, Exxel Energy USA Inc. (\"Exxel USA\"), has\nstated its intention to pay US $40 million, subject to certain adjustments, to\nacquire Galaxy's undivided 25% working interest in the Garfield County,\nColorado, project known as Rifle Creek.\nThe parties have committed to negotiate a Purchase and Sale Agreement\n(\"PSA\") over the next several weeks. The PSA will be subject to Exxel raising\nsufficient funds, at its sole discretion, to effect the purchase. Depending\nupon the amount of financing raised by Exxel, up to 25% of such purchase price\nmay be payable in Exxel stock. In addition, the PSA will be subject to\napproval by Galaxy's senior lenders, and other terms and conditions. Exxel USA\nowns the other 75% working interest in Rifle Creek. The project consists of a\ntotal of approximately 6,300 net acres in the prolific Piceance Basin of\nColorado.\n\nThe TSX Venture Exchange has not reviewed and does not accept\nresponsibility for the adequacy or accuracy of this release.\n\n\n","length":1499,"tagName":"div"}]