Vortex Resources Corp. has signed a Memorandum of Understanding to enter into a definitive asset purchase agreement with Blackhawk Investments Limited, based in London, England. Blackhawk will exercise its exclusive option to acquire all of the issued and allotted share capital in Sandhaven Securities Limited (SSL), and its underlying oil and gas assets in NT Energy (about 62% control).
NT Energy holds rights to mineral leases covering approximately 12,972 acres in the Barnett Shale. The leases are located in Parker, Jack and Palo Pinto counties of Texas containing proved and probable undeveloped natural gas reserves. SSL is a wholly owned subsidiary of Sandhaven Resources plc, a public company registered in Ireland, and listed on the Plus exchange in London.
Under the terms of the agreement, Blackhawk will exercise its option to acquire the leases and then transfer such leases to Vortex Resources Corporation. A more detailed explanation of the deal terms can be found in the Company's Form 8-K filed today.
The above transaction is subject to the drafting and negotiation of a final definitive agreement, performance of due diligence as well as the Board approval of the Company. There is no guarantee that the Company will be able to close the above transaction or that the transaction will be closed on the above stated terms.
Commenting on the potential acquisition, Mike M. Mustafoglu, Chairman of the Company, stated, "We are excited about entering the Barnett Shale play with acreage of this size and quality. As you know, Barnett field, a mega-shale play, is the most mature out of the emerging shale plays in that it has been aggressively developed since the beginning of the decade. This acquisition conforms to our philosophy of entering drilling projects where risks have been adequately identified in order to produce stable and attractive risk-adjusted returns for our shareholders. We believe the emergence of new technologies to allow us economically exploit our acreage has great potential to increase our reserve base dramatically."
Yossi Attia, the CEO of Vortex,added, "We are pleased that we will be joining a list of distinguished companies such as Chesapeake, Devon EOG, XTO and Quicksilver operating in the Barnett Shale. According to studies made by NT Energy, this acreage is capable of supporting the drilling of 108 wells. Each successful well usually contains 1 Bcf to 1.5 Bcf of reserves. We will work diligently to minimize our finding and development costs by employing the latest technology to optimize our returns for our shareholders."
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