JayHawk Energy, Inc. announces the signing of a purchase & sale agreement with Titan West Energy, Inc., a private company, to acquire additional acreage and assets in Crawford County Kansas.
Pursuant to the agreement, the Company acquired a 100% working interest in fourteen (14) completed coal bed gas wells & PNG (Petroleum & Natural Gas Rights) and thirteen hundred, thirty-six (1,336) acres of leases for $300,000 and 50,000 shares of the Company's common stock. The land base in this acquisition is contiguous to and strategically additive to the Girard project which previously closed on March 31, 2008.
"This acquisition adds an additional 20 drill targets to our program, and we plan to tie-in the 14 completed wells to our 100% owned 16 mile group pipeline within the next few months," says JayHawk President & CEO, Lindsay Gorrill.
"We will be focused on the execution of dewatering equipment and infrastructure correlating to these wells in the post stage of construction, and to the group pipeline to enable immediate production. For other wells, drilling commencement is expected in the first week of May, 2008. We are confident and excited that this new acquisition will further build our South Eastern Kansas CBM program, again increasing shareholder value for a quality return," concludes Lindsay Gorrill.
Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release, such as probable, possible and potential, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Examples of such disclosures would be statements regarding "probable," "possible," or "recoverable" reserves among others.
Management hopes these transactions will bring additional value to the shareholders of JayHawk Energy. There is no guarantee that the projects that JayHawk has recently acquired will increase the value of its shares of common stock, or that JayHawk will acquire rights to explore and operate any other such projects, or that in the event that it acquires rights to explore and operate other such projects, that these actions will be successful or increase the value of JayHawk's common stock.
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