Consolidated-Tomoka Land Co. (NYSE MKT: CTO) (the “Company”) today
announced that Kerogen Florida Energy Company LP has made the fourth
year payment for its eight-year oil exploration lease with the Company
while reducing the leased acreage to approximately 42,000 net mineral
acres in Hendry County, Florida. The Company received a payment of
approximately $2.5 million, representing approximately $1.9 million of
rent for the adjusted acreage for the fourth year of the lease and a
$600,000 payment related to the drilling requirements contained in the
lease. Approximately 40,000 net acres were removed from the lease. The
Company plans to discuss leasing these acres with other exploration
companies.
John P. Albright, President and Chief Executive Officer of the Company
stated, “We’re pleased that Kerogen opted for the fourth year of the
lease as we believe it clearly indicates their continued interest in
pursuing oil exploration on our subsurface interests in Hendry County.”
Mr. Albright further noted, “The continuation of this leasing
arrangement for the fourth year was not factored into the guidance we
provided earlier this year for fiscal year 2014 so we remain comfortable
with our full-year guidance for earnings per share.”
About Consolidated-Tomoka Land Co.
Consolidated-Tomoka Land Co. is a Florida-based publicly traded real
estate company, which owns a portfolio of income properties and loan
investments in diversified markets in the United States, and over 10,500
acres of land in the Daytona Beach, Florida area. Visit our website at www.ctlc.com.
"SAFE HARBOR"
Certain statements contained in this press release (other than
statements of historical fact) are forward-looking statements. The words
“believe,” “estimate,” “expect,” “intend,” “anticipate,” “will,”
“could,” “may,” “should,” “plan,” “potential,” “predict,” “forecast,”
“project,” and similar expressions and variations thereof identify
certain of such forward-looking statements, which speak only as of the
dates on which they were made. Forward-looking statements are made based
upon management’s expectations and beliefs concerning future
developments and their potential effect upon the Company. There can be
no assurance that future developments will be in accordance with
management’s expectations or that the effect of future developments on
the Company will be those anticipated by management.
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