Oil and gas firm Paxton Energy has closed an agreement with Montecito Offshore for the acquisition of a 70% working interest in 546.87 acres in the Vermilion 179 track, US.
The interest was acquired for $1.5 cash, a $500,000 subordinated note and an issuance of 15 million shares of Paxton common stock.
Vermilion 179 is located in the shallow waters of the Gulf of Mexico off the coast of Louisiana.
Paxton chairman Charles Volk Jr said that the Vermilion 179 acquisition follows the company’s strategy of acquiring producing properties with proved and probable reserves.
US based Paxton is engaged in the acquisition, exploration, development and drilling of oil and natural gas properties.