This is what Sylios tried to sell these oil wells for last March 2013!
US Natural Gas Corp Enters into Agreement for the Sale of Certain Oil and Gas Assets in West Virginia
Capital Infusion Will Allow for Further Project Development and Revenue Acceleration
ST. PETERSBURG, Fla. February 5, 2013 -- US Natural Gas Corp (OTC Pink:UNGS), an energy exploration company with operations in the Appalachian Basin announced today that the Company has entered into an agreement for the sale of certain of its oil and gas properties located in Wayne County, West Virginia.
On January 19, 2013, the Company received and entered into a Letter of Intent with Natural Gas Resources Corp (“Buyer”), a Nevada corporation, for the sale of certain assets operated by a wholly owned subsidiary of the Company, US Natural Gas Corp WV. Subsequently, both parties entered into an Asset Purchase Agreement defining the terms of the transaction.
Under the terms of the Asset Purchase Agreement, the Company is to receive consideration in the amount of one million dollars ($1,000,000) with three hundred thousand dollars ($300,000) to be paid at closing and the balance of seven hundred thousand dollars ($700,000) to be paid from production. In exchange, the Company will transfer certain assets located in Wayne County, West Virginia to the Buyer. The transaction is scheduled to close on or before March 19, 2013 upon completion of due diligence by the Buyer.
As an update, the Company is in the final stages of its due diligence pertaining to the Wayne Gas Company acquisition. The capital infusion from today’s announced transaction will allow the Company to proceed with its previously announced acquisition on a stand-alone basis. The Company’s initial plan was to bring in a partner to joint venture on the transaction. By funding the transaction itself, the Company projects to receive $750,000-$900,000 from the sale of the acquired mineral rights.
"The sale of certain West Virginia assets will provide the Company with the required funding to address individual well issues along with gathering system upgrades needed to boost productivity. This will also allow the Company to prevent further dilution to shareholders by refraining from outside financing. ," said Wayne Anderson, President of US Natural Gas Corp. "The ability to internally fund our previously announced acquisition will provide the Company with an immediate profit upon the sale of the acquired mineral rights. We estimate the valuation of the mineral rights to be conveyed to us via deed at approximately $750,000 in today’s market.”
About US Natural Gas Corp
US Natural Gas Corp is an independent energy company principally engaged in the acquisition, exploration and development of mature long-lived oil and natural gas properties. The company's current operations are concentrated in the Appalachian Basin within the states of Kentucky and West Virginia with core assets consisting of 17,000 acres of mineral rights leases and interest in approximately 150 oil and gas wells. More information on US Natural Gas Corp can be found on the Company’s website at www.usnatgascorp.com. Safe Harbor Statement
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