Boundary Bay Resources has signed a definitive letter of intent with Nitro Petroleum and acquired a 50% working interest in the rework program for the producing well at the Jessica 23A property located in Seminole County, Oklahoma, US, for $50,000.
The company also acquired inventory in excess of 200 barrels, which may be sold immediately, which was produced at the Jessica property. The company has also acquired the right to participate in additional wells at the Jessica property in exchange for a pro rata interest.
According to the terms of the letter of intent, the company will receive 50% of the net revenues generated from the already producing well at the Jessica property for the life of the rework program.
Lee Borschowa, president of Boundary Bay, said: This acquisition falls perfectly in line with our strategic plan to acquire working interests in established oil and gas properties. Funds generated from this acquisition will be used to acquire additional oil and gas properties with proven reserves and upside exploration potential.