Pacific Energy & Mining Company announced the execution of a letter of intent (LOI) to sell oil and gas interests from its holdings in Grand County, Utah to BayHill Capital Corporation ("BayHill"). PEMC will receive shares in BayHill for its interest in Cisco oil and gas property.
Properties to be acquired from PEMC known as the Greater Cisco Field with interests in a total of approximately 5,460 acres, have a total of 39 wells drilled with approximately 9 producing wells which are producing from the Mancos, Dakota and Morrison Formations at depths ranging from 300 feet to 1,100 feet. Additionaly 6 wells are awaiting pipeline connection. There is additional potential production from these formations and from the Deeper Entrada Formation at 3,000 feet.
As set forth in the LOI, the parties will use their best efforts to compete definitive purchase agreements in a timely manner. Closing will be conditioned on the following: completion of an independent reserve analysis and due diligence, agreement on the number of shares to be issued to each of the parties, approval by the Board of Directors, shareholders, and managers of each of the parties as required, and execution of definitive agreements.
It is anticipated by all parties that the Board of Directors of the Company will be reconstituted to include three directors nominated by the other parties and one director nominated by Pacific Energy & Mining Company.
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