Tomoka: Kerogen Makes Fourth Year Oil Exploration Lease Payment

Daytona Beach, Fla. - Consolidated-Tomoka Land Co. has announced that Kerogen Florida Energy Company LP made the fourth year payment for its eight-year oil exploration lease with the Company while reducing the leased acreage to approximately 42,000 net mineral acres in Hendry County, Florida. The Company received a payment of approximately $2.5 million, representing approximately $1.9 million of rent for the adjusted acreage for the fourth year of the lease and a $600,000 payment related to the drilling requirements contained in the lease. Approximately 40,000 net acres were removed from the lease. The Company plans to discuss leasing these acres with other exploration companies.

John P. Albright, President and Chief Executive Officer of the Company stated, “We’re pleased that Kerogen opted for the fourth year of the lease as we believe it clearly indicates their continued interest in pursuing oil exploration on our subsurface interests in Hendry County.” Mr. Albright further noted, “The continuation of this leasing arrangement for the fourth year was not factored into the guidance we provided earlier this year for fiscal year 2014 so we remain comfortable with our full-year guidance for earnings per share.”

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