On April 3rd Cheetah Oil & Gas (the Company) agreed to purchase producing Oil & Gas Assets in the State of Mississippi.
Cheetah has acquired an 8% WI in the Belmont Lake field which has current production of 130 bbl/d of light oil from two producing wells. This field has proven reserves of 400,000 bbl’s of oil and is open to further development and exploration upside.
Included in the purchase is an option to drill wells on over 132,000 acres of exploration lands that have extensive existing 2D and 3D seismic coverage. The project operators have identified multiple targets for potential future drilling. The company has a 40% WI in the option on these exploration wells over these lands.
The Total Purchase price of the assets was about $186,000 this works out to a flowing bbl metric of less than $18,000.00 under $6.00 per barrel of proven reserves per the company's 8% WI.
Management is very pleased with the Belmont Lake acquisition as it continues its transition towards becoming a producing oil & gas company. Not only does the Belmont Lake project provide us with immediate cash flow but there are proven probable development locations that will increase production and cash flow by a significant amount once developed.
The Company continues to evaluate North American energy projects that are reasonably obtainable and can deliver long term value to shareholders and will announce to the market place when such deals are completed.
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