This acquisition will include nearly 94% of the working interest in the wells and leases and over 72% of the net revenue interest.
"These wells made about 25,000 mcfg in June," reports UPDA Petroleum Engineer Brian Clancy. "That's over $182,000 in gross revenue at current prices. In addition, the logs and tests from the Barnett Shale zones are very promising and with the resources we have available from our Continental Fuels, Inc. (OTCBB: CFUL - News; FWB: CIQB) subsidiary, we are in a very good position to handle the increased liquids that will be generated by producing from the Barnett Shale -- particularly in light of the significant increase in natural gas production we expect to realize from those zones."
The acquisition has a total purchase price of $4.6 million with UPDA contributing $800,000 in restricted common stock and $350,000 cash. The remainder of the cash portion of the price is being financed by Sheridan Asset Management, LLC of White Plains, New York in a conventional 3 year loan.
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