Avere Energy has signed the revised and restated letter agreement to acquire a working interest in an undeveloped Haynesville prospect in Mississippi. The letter agreement between Avere and American Exploration Corp., a Nevada corporation (AEXP-OTCBB, "American") states that the Company will earn a 20% working interest in the Joint Venture Lands (the "Joint Venture Lands") by paying 20% of the costs of the drilling and completion of an initial deep gas well (an estimated US $2 million) and by making additional payments aggregating US $2 million to American, including a non-refundable US $75,000 deposit, which was paid on January 27, 2010.
Avere continues to organize a financing to pay for (1) the farm-in and drilling obligations in connection with its farm-in on this Haynesville shale gas prospect as described above; and (2) for at minimum a subsequent development well on the property; and (3) for a seismic acquisition program. In addition to the above, the proceeds will provide the Company with sufficient working capital to complete its Reactivation and will be used for general corporate purposes.
Closing of the Offering is subject to the approval of the TSX Venture Exchange.
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