The company also acquired a 97.5% interest in the transportation agreements governing oil and gas sales from the field and purchased an additional 26% working interest in the field in exchange for the issuance of 1,290,669 shares of the company’s restricted common stock.
The company said that the purchase of the pipeline and transportation agreement eliminates a gathering fee associated with the sale of crude oil and natural gas for the company’s interest, equal to $3.00/bbl and $1.00/mcf over the life of the field and gives the company control of the physical pipeline.
The company is returning the field to full production this week and expects to be producing at 70bopd-100bopd and 100mcfpd-200mcfpd by the end of the month based on prior production and sales levels, according to the company.
