Creston Resources Secures Funds for Uintah Program
Creston Resources has closed an additional $372,000 of its Senior Secured Notes and $216,000 of existing debt converted into the offering for a total of $2,123,000. The 10% Notes mature on May 1, 2010 and carry warrants that have an average strike price of 18 cents per share. Bathgate Capital Partners acted as exclusive placement agent for the offering, which was placed with institutional and accredited investors.
Brian Jones, president of Creston Resources, stated, "These additional funds will primarily go towards the high priority wells under our refurbish and workover program. I am also pleased to report that we have reestablished production on the first several wells in the program. If results continue similar to the first several wells, Creston should begin generating cash flow in line with management's goals." The company plans to issue a production update when 14 wells have been brought on line.
Creston Resources is an emerging oil and gas exploration and production company focused on the development in the prolific Uintah basin of Utah. The company's strategy includes increasing production by reworking its lower production wells (which may include, in some cases, perforating new zones) and drilling new wells from among the offset and infield locations available on its acreage. Most locations are believed to offer multiple prospective pay zones, from moderately shallow to moderately deep. Creston will also seek additional opportunities to acquire projects with production and/or acreage with proven or potential reserves.
- Creston Resources Secures Funds for Uintah Program (Jul 18)
- Fellows Energy Completes $2.25 Million Financing (May 30)
- Creston Resources Acquires Producing Wells in Uintah Basin (May 02)