This agreement is for the development and production from the Torrance Field acreage located in the Los Angeles Basin, California, and the exploration and development of other prospects in Nevada.
Blacksands will acquire 50% of the working interest and mineral lease rights of the Torrance field acreage including existing proven reserves from OGTF.
The company will also acquire a 50% working interest and mineral rights in the oil and gas leases in other Nevada prospect.
Blacksands said it has undertaken to fund 100% of the work program for the projects.
According to the company, the near-term work program will include drilling of five production wells within the Torrance Field, drilling of ten exploration wells within the Nevada prospect, and additional exploration drilling.
