Source: Streetwise Reports 10/12/2018
The company relayed the recent changes made to its existing agreements for Eagle Ford assets in South Texas.
Oracle Energy Corp.’s (OEC:TSX.V; OECCF:OTC) wholly owned subsidiary Oracle Oil and Gas extended the dates of two existing agreements, one for its acquisition of Eagle Ford assets, the other for its purchase of mineral rights on adjoining acreage.
Regarding acquisition of the Eagle Ford assets, called the HBP assets, Oracle and a private owner agreed in an amendment to push back the closing date by six months, to March 29, 2019, from Sept. 28, 2018. They also agreed to delay the effective date to Jan. 1, 2019, from July 1, 2018. Pursuant to the amendment reflecting those changes, Oracle must deposit another $250,000 in cash before Oct. 31, 2018, which is to be applied toward the purchase price.
Earlier in the year, Oracle agreed to acquire a 100% working interest and a 74% net revenue interest in those HPB assets, which encompass 2,490 acres of oil and gas leases, six wells currently producing 80 barrels of oil equivalent per day, seven shut-in wells and the existing production infrastructure on the properties.
In other news, Oracle initiated an amendment to the May 2019 option agreement in which it agreed to acquire the mineral rights on 5,000 net acres adjoining the HBP assets. The recently signed amendment called for extending the period for the option to be exercised to Jan. 15, 2019.
That is contingent upon on three conditions. Oracle must make a $250,000 nonrefundable extension payment on or before Oct. 1, 2018, which the company says it has done; it must make a second $250,000 payment before Oct. 31, 2018, which the company says it will dp; and it must agree to an increase in lease payments per acre upon exercising the option.
Chairman and CEO Darrell L McKenna commented, “We continue to advance our plans on what we consider to be the best basin to operate, the Lower Eagle Ford oil window. The negotiations and the resultant amendments granted is a true testament in the deep-rooted relationships that we have built over the years from working in Texas. The team and I continue to work hard to bring this phenomenal project to its full potential and remain committed to spudding the first well in the first quarter of 2019.”
Read what other experts are saying about:
- Oracle Energy Corp.
Sign up for our FREE newsletter at: www.streetwisereports.com/get-news
Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Oracle Energy Corp. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Oracle Energy. Please click here for more information.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Oracle Energy Corp., a company mentioned in this article.
( Companies Mentioned: OEC:TSX.V; OECCF:OTC,
)