Business
Company Signs Letter of Intent on Rifle Creek Properties
Company Signs Letter of Intent on Rifle Creek Properties.
About this update from Xxl Energy Corp.
[{"type":"text","content":"\n\n\n\n\nVANCOUVER, BC, Aug. 1 /CNW Telbec/ - Exxel Energy Corp. (TSX-V: EXX)\n(\"Exxel\") and Galaxy Energy Corporation (AMEX: GAX) (\"Galaxy\") have entered\ninto a non-binding letter of intent setting forth the terms of an agreement to\nbe negotiated (the \"Agreement\"). The Agreement would provide for Exxel's\nwholly-owned subsidiary, Exxel Energy (USA) Inc. (\"Exxel USA\"), to pay \n$50 million (US), subject to certain adjustments, to acquire all of the\nundivided 25% working interest which Galaxy's wholly-owned subsidiary, Dolphin\nEnergy Corporation, owns in the parties' project in Garfield County, Colorado,\nknown as \"Rifle Creek\". Exxel USA owns the other 75% working interest in Rifle\nCreek.\nExxel and Dolphin first acquired an interest in undeveloped leases in the\nRifle Creek project in February 2005, and have continued to acquire acreage\nand interests in producing properties since that time. The project currently\nconsists of a total of approximately 6,000 net acres in the prolific Piceance\nBasin. The parties have committed to attempt to negotiate the Agreement over\nthe next several weeks, which Agreement would be subject to several conditions\nincluding Exxel obtaining financing in an amount and on terms satisfactory to\nExxel in its sole discretion, as well as obtaining various regulatory\napprovals including that of the TSX Venture Exchange. There can be no\nassurance that the Agreement can be successfully negotiated.\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":1637,"tagName":"div"}]