This is one of the best non dilutive deal i have seen for a long time, market cap of 14mill and cash 10million $ in the bank and now with a property already producing 350bbl/day. Revenue from that is 840,000$US/month wich is calculated at a oil price of 80$US.
Get in now before it trades above 30cents, cannacord and anonymous is all over it..
Do your own DD.
TER Terrex to receive $14.7-million from hydrocarbon deal
Mar. 21, 2011 (Stockwatch) --
Terrex Energy Inc (TSX-V:TER)
Shares Issued 82,691,103
Last Close 3/18/2011
.17
Monday March 21 2011 - News Release
Mr. Kim Davies reports
TERREX ENERGY INC. - ANNOUNCES $14.7 MILLION FINANCING THROUGH EXECUTION OF HYDROCARBON PURCHASE AGREEMENT
Terrex Energy Inc. has entered into a hydrocarbon purchase agreement with sandstorm Metals & Energy Ltd. ("Sandstorm") for an initial up front deposit of $14.7 million. Proceeds from the transaction will be used, in part, to finance the $13 million acquisition of the Two Creek property announced on March 7, 2011 and scheduled to close on March 31, 2011.
"This agreement provides a unique financing arrangement, essentially on a non-dilutive basis, for the acquisition of the property at Two Creek." said Kim Davies, President and CEO. "Subsequent to closing, Terrex will have approximately $10 million of working capital available to pursue the development of our properties. We see significant value in our enhanced oil recovery projects and believe the acquisition by a third party, of approximately 20% of our production for an initial payment of $14.7 million substantiates this."
Under the Hydrocarbon Purchase Agreement Sandstorm will acquire 15% of all hydrocarbons produced from the Company's Strathmore property; and 25% of hydrocarbons produced from the Two Creek Jurassic A pool and, for five years, 25% of all hydrocarbons produced from the Two Creek Jurassic B pool. The Two Creek Jurassic A and B pools comprise the Two Creek property being purchased by the Company. As consideration for the forward production purchased under the agreement, Terrex will receive an upfront deposit of $14.7 million together with ongoing per unit payments of $15.00/bbl of crude oil, $1.00/mcf of natural gas, and $8.00/bbl of natural gas liquids delivered to Sandstorm. The agreement stipulates that Sandstorm is responsible for royalties associated with the purchased production, and that Terrex will implement chemical flood programs within 24 months and 36 months of the effective date, at Strathmore and Two Creek respectively. The transaction is subject to approval by the TSX Venture Exchange ("TSXV") and the upfront deposit is payable to Terrex upon approval.
Terrex believes optimization and enhanced oil recovery programs at both the Two Creek and Strathmore properties can significantly increase production and recoverable reserves. On January 21, 2011 the Alberta Energy Resources Conservation Board approved the Company's plans for an Enhanced Oil Recovery ("EOR") program at Strathmore. Terrex intends to commence the planning, evaluation and development of such programs at Two Creek immediately following closing of the acquisition. Subsequent to closing the Two Creek acquisition, Terrex will be producing approximately 350 barrels of oil equivalent per day.
We seek Safe Harbor.