Pursuant to the agreement, the company acquired a 100% working interest in 14 completed coal bed gas wells and PNG (petroleum and natural gas rights) and 1,336 acres of leases for $300,000 and 50,000 shares of the company’s common stock.
Lindsay Gorrill, president and CEO of JayHawk, said: This acquisition adds an additional 20 drill targets to our program, and we plan to tie-in the 14 completed wells to our 100%-owned 16-mile group pipeline within the next few months. We will be focused on the execution of dewatering equipment and infrastructure correlating to these wells in the post stage of construction, and to the group pipeline to enable immediate production.
For other wells, drilling commencement is expected in the first week of May 2008. We are confident and excited that this new acquisition will further build our southeastern Kansas coalbed methane program, again increasing shareholder value for a quality return.
