Treaty-Town Oil Transaction Delayed Due to Weather
Treaty has passed the expected February 21st closing date for the Town Oil Company assets purchase due to issues beyond its control.
Treaty's lender is located in an area that has been affected by continued severe weather which has caused the lender to ask for a closing date of April 1, 2011.
The reasons given by the lender are lack of time to finish the title searches on the 57 leases and time needed to finalize the loan documents based on the results of the title searches.
Treaty has asked for additional time from Town Oil and has been told to continue toward the loan closing and they would hold off on taking possession of the 60 million shares of Treaty Energy stock held in escrow as liquidated damages should the loan not close. Just to be clear, these shares are held in an escrow account in Kansas and can be converted from the listed owner of the shares to Town Oil at their discretion should the loan not close.
Treaty's lender will work diligently to close this acquisition as soon as possible.
Treaty's CEO Andrew Reid stated, "Treaty Energy has enjoyed a very good relationship with Town Oil management and appreciates their willingness to continue to the closing of this acquisition."