Mr. Timothy Turner reports
UNITED HUNTER OIL AND GAS CORP. ANNOUNCES AN AGREEMENT TO ACQUIRE MULTIPLE PRODUCING AND DRILLABLE PROSPECTS IN SOUTH TEXAS
United Hunter Oil & Gas Corp., through its U.S. subsidiary, United Hunter Texas LLC (UHT), has reached a mutual agreement with Vesta Resources LLC and others to acquire a working interest operatorship in two producing wells and a 100-per-cent working interest in eight additional prospects in multiple south Texas counties for an all-inclusive cost of $400,000. The purchase price paid to the sellers will go toward clearing other working interest owners' interests in title and any pending debts that are owed.
UHT's working interest in the producing wells will vary between 25 per cent and 43 per cent, and it will acquire a net revenue interest between 18.75 per cent and 35 per cent. The additional prospects that are being acquired will be conveyed at 100-per-cent working interest and 75-per-cent net revenue interest. Several leases have already been acquired, and some prospects have had the drill sites cleared and prepared for drilling. All of these prospects are categorized as exploitation or development prospects and further defined as in close proximity or adjacent to either existing or previously existing production.
UHT will conduct its due diligence activities over the next several weeks. The final purchase and sale agreements, to be executed by UHT, are subject to completion of its due diligence, including negotiation of, and any adjustments to, the purchase price, United Hunter Oil & Gas board approval, financing and TSX Venture Exchange approval.
Timothy Turner, chief executive officer of United Hunter Oil & Gas and managing director of UHT, stated: "We are very excited to begin operations in Texas and aim to grow production and shareholder value through the addition of complementary low-cost producing assets. The acquisition of these assets will allow UHT to continue to assess similar acquisitions, and we look forward to growing our asset base as we implement our business strategy of acquiring low-cost projects with predictable and promising revenues." Mr. Turner's business also owns a 25-per-cent interest in Vesta Resources LLC.
Further details will be provide as they become available.
We seek Safe Harbor.
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