Passport Energy to pay $600,000 for Saskatchewan lands
2013-11-28 11:23 ET - News Release
Mr. Bruce Murray reports
PASSPORT ENERGY LTD. ANNOUNCES ADDITIONAL LAND ACQUISITION DETAILS
Passport Energy Ltd. is providing, further to its news release dated Nov. 27, 2013, the following additional details of the previously announced land acquisition.
Passport has entered into an agreement with a private oil and gas company to acquire 22-1/4 contiguous sections (5,760 acres) of 100-per-cent-owned land in the Hardy area of southeast Saskatchewan for $600,000 cash. The acquisition will be subject to certain conditions including Passport completing due diligence on the properties, obtaining a satisfactory title opinion on the properties, completing a financing, and completing the formal agreement between Passport and the vendor.
Passport believes the acreage is located in a more prospective area of the new light oil Bakken play trend that it has been exploring for the past two years. Over 70 per cent of the new land block does not expire until 2017, and except for 2.5 sections, all of the acreage is encumbered by Crown royalty only. Under the terms of the agreement, closing shall, subject to certain closing conditions, be completed on or prior to Jan. 31, 2014.
The new acquisition of lands will allow Passport to explore the Bakken trend, in a geologically more prospective area, with better royalties and economics, and at a pace dictated by financing from capital markets and internal cash flow. This acquisition will provide Passport with a much larger acreage base in the Hardy area, with higher working interests and a significantly lower royalty structure.
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