Derek Completes Purchase of LAK Ranch Interest
Derek Oil & Gas Corporation on Tuesday announced the closing of the purchase of Ivanhoe Energy's interest in the LAK Ranch Project as at November 30, 2006. The total purchase price was US$800,000 of which US$600,000 was paid in cash on November 30, 2006 and the remaining US$200,000 was paid to Ivanhoe through a 5% gross overriding royalty interest on future LAK Ranch production. Please note that this 5% royalty arrangement will terminate once Ivanhoe receives US$200,000.
Included in the purchase of Ivanhoe's interest among other things was the ownership of the US$1.1 million high definition 3D seismic paid for primarily by Ivanhoe which has been and will be used by Derek's consultants to pinpoint the location of the upcoming 13 well program announced November 10th, 2006. Derek and SEC Oil and Gas Partnership can now finalize their arrangements with relation to this program. Derek is proceeding with the permitting process for this program and expects to have permits to drill by January of 2007.
Derek now holds a 95% working interest in the LAK Ranch project and is the project operator. The LAK Ranch Project is a strong fit for Derek's corporate focus of using enhanced oil recovery (EOR) techniques to develop new production from reservoirs in North America. Derek and its valued partner,
SEC Oil and Gas Partnership are confident in the ability of Derek's management to drive this project forward as promptly as possible in 2007.
Derek Oil & Gas Corporation is a Canadian based, publicly traded oil exploration, development and production company that utilizes enhanced oil recovery (EOR) techniques to develop new production from reservoirs in North America. Derek's current focus is on the further development and increasing production from their prime property located in NE Wyoming's Powder River Basin just five miles up the road from the Newcastle refinery.
- Ivanhoe, SBM Team Up in Alliance for Offshore Heavy Oil Development (Mar 20)
- Ivanhoe Finalizes Transfer of Zitong Block to Shell China (Dec 27)
- Ivanhoe Inks MOU for China Block Sale (Jan 11)
Company: Derek Oil and Gas more info
- Derek: Steam Injection Begins at LAK Ranch (May 15)
- Derek Reports Successful LAK Ranch Drilling (Apr 25)
- Derek Announces LAK Ranch Progress (Mar 22)
Company: SEC Oil & Gas Partnership more info
- Derek Completes Purchase of LAK Ranch Interest (Dec 05)
- Derek Commits to LAK Ranch Program (Nov 08)