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statesideon Aug 11, 2010 2:39pm
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Covenant to acquire Montana oil and gas leases
Covenant to acquire Montana oil and gas leasesTo gauge the significance of this announcement, please take an hour and listen to the Rosetta Resources conference call from yesterday. The Alberta Basin Bakken play is the most exciting US on-shore oil play that has not yet caught investor's attention. It will.
stateside
Covenant to acquire Montana oil and gas leases
2010-08-11 14:35 ET - News Release
Mr. Frank Port reports
COVENANT RESOURCES ANNOUNCING SIGNING OF LOI FOR ACQUISITION OF OIL AND GAS PROPERTIES
Mr. Frank Port, President and CEO of Covenant Resources Ltd. (the "Company") wishes to announce the signing of a Letter of Intent ("LOI") with Damont Energy Inc. for the acquisition of oil and gas leases in Montana.
The LOI outlines the terms of the acquisition of all of Damont's right, title and interest in 41,500 net acres of oil and gas leases in "The SweetGrass Arch" Prospect located in Toole and Pondera Counties, Montana. The cost of the acquisition will be approximately $3.8 million, based on the issuance of approximately 19,000,000 shares of Covenant at a deemed price of
.20 per share. Upon completion of due diligence and final negotiations, a definitive purchase agreement will later be entered into.