The assets to be acquired from Cholla are in Leavenworth County Kansas and include acreage (leases), wellbores, equipment and technical data in close proximity to the Cholla Pipeline, which was acquired by Sefton in December 2010.
Subject to final due diligence, which is currently taking place, the purchase price is $200,000, which will be satisfied from existing resources.
The company expects that the conditional aspects of the agreement will be finalized by mid April with completion taking place by the end of April 2011.
Sefton Resources acting chairman and CEO Jim Ellerton said that these assets are in proximity to the Cholla Pipeline, which the company acquired in December 2010.
"They complement our strategy to aggregate and transport gas in the region by giving us a our own potential gas production base as well as the volumes of third party gas expected to move through our pipeline system," Ellerton said.
