Rangeford Resources Corp (RGFR)

Rangeford Resources Corporation

5215 N. Oconnor Blvd.
.Suite 1820
Irving, Texas 75039

Ph: 970 218-7080
Ph: 406 855-3003

Website: http://www.rangeford-resources.com/

Steven R. Henson President
Suzannah Guthrie Secretary
Gregory Hadley, Director
 

Form 8K

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8932203


Purchase and Sale Agreement

On November 15, 2012, Rangeford Resources, Inc. (the "Company") entered into a Purchase and Sale Agreement (the "Agreement") with Great Northern Energy, Inc. ("GNE") to acquire a substantial non-operating working interest in oil assets in East Texas in consideration for a Purchase Price of $3,900,000 ("Cash Portion") that breaks down into a deposit of $100,000; a Promissory Note in the amount of $1,100,000 bearing 8% interest per annum, which is due and payable in full, twelve months from the date of the Note, with four equal quarterly payments due beginning on closing; a Promissory Note in the amount of $2,700,000, due on June 30, 2014,with initial payment of $1,200,000 due on closing, and secured by the assets being purchased under the Agreement. Both Promissory Notes are secured by a Pledge and Security Agreement that grants a security interest in all of the working interests and options of the Company and any proceeds resulting therefrom to GNE; additional consideration consists of 6,500,000 shares of the Company's common stock, and an additional 3,500,000 shares of common stock is reserved for roll-ups and bonuses.  The properties included under the Operating Agreement, described below, hold over 100 proven undeveloped oil locations and as many rework wells at depths above 3,400 feet, with lifting costs estimated at $13.00/BOE or less on the currently producing wells. 

East Texas Oil Field

The East Texas Oil Field is a large oil and gas field in east Texas. Covering 140,000 acres (570 km²) and parts of five counties, and having 30,340 historic and active oil wells, it is the second largest oil field in the United States outside of Alaska, and first in total volume of oil recovered since its discovery in 1930.^[1] It is a component of the Mid-Continent Oil Province, the huge region of petroleum deposits extending from Kansas to New Mexico to the Gulf of Mexico.

Red counties show the core of East Texas

The field includes parts of Gregg, western Rusk, southern Upshur, southeastern Smith, and northeastern Cherokee counties in the northeastern part of the state. Overall the field is about 45 miles (72 km) long on the north-south axis, and five miles (8 km) across. Interstate 20 cuts across the field from east to west, and the towns of Kilgore, Overton, and Gladewater are on the field. At one time, downtown Kilgore had more than 1,000 active wells clustered in a tight area, making it the densest oil development in the world.^[2]

On November 15, 2012, the Company entered into a Premises Use Agreement (the "PUA") with Prism Corporation ("Prism") and GNE for the premises on the 18 ^th floor of the main building of Williams Square in Las Colinas, Irving, Texas, with an address of 5215 North O'Connor Boulevard, Suite 1820, Irving Texas 75039, for a deposit of $7,500 and first month's rent of $7,244 due in January, 2013, with increases in the rent, contingent upon the useable square footage increase due to a planned build-out, occurring each six months thereafter and until the original lease executed between GNE and Prism expires, or by September 30, 2016.

This brief description of the Premises Use Agreement is only a summary of the material terms and is qualified in its entirety by reference to the full text of the form of the Premises Use Agreement as attached to this Current Report on Form 8-K as Exhibit 10.2.
 

Longwood Oil and Gas Field (Oilfield) is located in Latex, Harrison County, TX

WASKOM LONGWOOD Oil Field

• Goodland Lime Development Re-drilling over a 30 mile anticline structure
• Over 6,000 acres & 100+ infill drilling locations for development
• Over 2,000 acres on the highest position in the field
• 2,500 foot average depth
• 30' - 40' Gross Zone Thickness
• 16% - 25% Net Porosity
• 50,000 to 75,000 BOE per well potential in Goodland Lime formation
• Secondary Shallow Zones:
  • Nacatoch Sands (1,100' Gas)
  • Blossum/Buckrange Sands (1,900' Gas)
• Louisiana Sweet Crude Price Index for oil sold (WTI + $10-$20)
• Existing current production on some lease areas with SWD's
• Oil Reserves: 20,000 -100,000 BOE/Well
• http://amerexoil.com/oil-natural-gas/acquisition/texas-shallow-oil/