PetroSun Announces Stock Purchase Agreement with Private Energy Company
PHOENIX, Sept. 06, 2018 (GLOBE NEWSWIRE) -- via OTC PR WIRE – PetroSun, Inc (OTC PINK: PSUD) The Board of Directors of PetroSun Inc (“PetroSun” or “the Company”) announced today that a Stock Purchase Agreement has been executed with M&M Production and Operation, Inc, a private energy company with assets in the San Juan Basin of New Mexico and their wholly-owned midstream asset, Independent Pipeline Corporation (IPC). The Stock Purchase Agreement conveys 100% of the issued and outstanding shares of M&M and IPC to PetroSun.
M&M Production and Operation, Inc asset base includes the following:
61 producing oil and/or gas wells
9,480.85 acres of leasehold consisting of Federal, State of New Mexico, Jicarilla Tribal and Navajo Nation
The leasehold contains 5,880.08 acres of Mancos Shale / Gallup SS rights, which include 10 current producing vertical Gallup SS wells and a dual-completion Dakota / Gallup well
The remaining leasehold contains 51 producing Picture Cliff (PC) / Chacra formation natural gas wells with Fruitland Coal PUDs (Proven Undeveloped).
Three F-250 field trucks, backhoe, three phase separators and parts inventory
M&M will commence a work-over / maintenance program during early 4Q 2018 to enhance existing oil and gas production on the leasehold. The production growth capabilities will be highlighted with the utilization of new horizontal drilling techniques. The Company’s leasehold of 5,880.08 acres containing the Mancos Shale / Gallup SS formations lies within an area of the San Juan Basin which according to the current USGS reserve report has a potential of up to 6 billion barrels of oil equivalent. The Mancos Shale / Gallup SS may become one of the top tier shale oil plays within the United States in the near term. The Company is strategically positioned within this play due to a large portion of its leasehold position being in the south oil pay window.
Independent Pipeline Corporation assets include a 4 ½ inch pipeline with a rare 45-foot right-of-way that allows for additional lines to be installed in the future. This strategic 26-mile pipeline runs from Ojo Encino, NM northwest to Lybrook, NM from the east-half of Township 22 North, Range 7 West to Section 11, Township 21 North, Range 6 West. The daily capacity of the pipeline is 12 million cubic feet; running through the heart of the South Mancos Shale / Gallup SS oil window in an area that has proven very difficult for operators to obtain a right-of-way. Therefore, the IPC pipeline and its right-of-way is strategic, as it will allow gas and oil to be moved to market and provide the Company with the option to form business alliances with other Operators to tariff and transport their gas through the IPC pipeline. Furthermore, the IPC pipeline and right-of-way creates an opportunity for the development of the vast Fruitland Coal methane reserves in this area of the San Juan Basin.
Forward-Looking Statements Disclaimer: This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by the following words: "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "ongoing," "plan," "potential," "predict," "project," "should," "will," "would," or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainty and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this press release. This press release should be considered in light of all filings of the Company that are disclosed on the OTC Markets.com website.
