Azure Resources closes 22.5% farm-out to Emperor Mr. Omair Choudhry of Azure reports
CATALCA HYDROCARBON LICENCE, THRACE BASIN, TURKEY FARM-OUT COMPLETED OF A 22.5% INTEREST
Azure Resources Corp.'s farm-out to Emperor Minerals Ltd. of a 22.5% net working interest in the Company's 45.0% interest in the Catalca Hydrocarbon Licence, Thrace Basin, Turkey has closed.
Under the terms of the farm-out agreement dated October 6, 2011 as amended, Cheetah-Yemen Holdings Ltd. ("CYHL") a wholly owned subsidiary of Emperor Minerals Ltd. will acquire a 22.5% net working interest in the Catalca Hydrocarbon Licence by paying the Company US $1,050,000 on closing (paid), paying a further US $1,450,000 on/or before March 15, 2012 and paying a further US $2,000,000 on/or before June 15, 2012. Should CYHL fail to make the US $1,450,000 payment to the Company by March 15, 2012 then CYHL's interest in the Catalca Licence will be reduced to 16% or pro rata from 22.5%. In addition should CYHL fail to make the US $2.0M payment to the Company by June 15, 2012 then CYHL's interest in the Catalca Licence will be reduced to 6% or pro rata.
The Company also reports that a 112 line km. of 2D infill seismic over a portion of the Catalca Licence area, following the completion of the program, has been received, processed and the interpretation is under way. Up to an initial two (2) well drilling program is planned based on the interpretation targeting expected productive natural gas in the Danismen and Osmancik formations.
The Catalca Licence covers 36,429 hectares and is situated some 30 km. west of Istanbul and is approximately 3 km. from a pipeline tie-in-point for sales at significantly better prices than currently available in North America. The Company is a joint operator with the holder of the remaining interest in the Block.