As per the PSA, Sun River purchased a majority of Katy’s operated oil and gas properties.

The original terms of the previously reported PSA called for a payment of $5m in cash and $3.5m worth of shares of the company’s common stock.

Sun River acquired multiple leases, which include three producing gas units containing four existing well-bores, three of which are currently producing.

Total acreage held by production under this acquisition is 2,486 gross acres (1,361 net acres).

In addition, 9,706 gross acres (7,549 net acres) are included in primary terms on multiple leases.

The company also estimates an aggregate of 253 additional drilling locations if the leases are fully developed.

Sun River’s wholly owned subsidiary, Sun River Operating, assumes operations on all properties acquired under the PSA effective immediately.