IDCN news - Signs One Million Dollar Deal With Sunray Oil
IDCN $1 MIL DEAL: Indocan Resources Signs One Million Dollar Deal With Sunray Oil
May 18, 2006 12:30:00 PM
BEAUFORT, N.C., May 18 /PRNewswire-FirstCall/ -- The Board of Directors of Indocan Resources Inc (OTC: IDCN) announces today that the Company has entered into an Oil and Gas Lease Sales Purchase Contract with Sunray Oil of Dallas, Texas, to acquire interests in two different properties. The Properties are located in Taylor and Wichita Counties, Texas, and are commonly known as the Abilene Project and the Waggoner Estate Project, described as follows:
Abilene Project
3200 +/- Acres, Taylor County, Texas, 15% Working Interest (11.25 % Net Revenue Interest) Purchase Price $250,000 USD. Sunray will drill and complete two (2) wells to the depth of 2,800' for the "Turnkey Price" of $250,000 USD. Indocan will additionally have the "First Right of Refusal" for further participation in additional wells at the rate of cost plus 20%.
Waggoner Estate Project
880 Acres, Wichita County, Texas, 15% Working Interest (11.25 % Net Revenue Interest) Purchase Price $750,000 USD. Sunray will drill and complete a minimum of five (5) wells and as many additional wells as needed to obtain a minimum production volume of 500 BOPD and re-work and/or re-complete all eighty-four (84) existing wells to maximize production for the "Turnkey Price" of $750,000 USD.
The total purchase price of $1,000,000 for the 15% Working Interest, (11.25 % (NRI) Net Revenue Interest) is payable as follows: Sunray acknowledges that Indocan will raise the money (on a best efforts basis) to fund this Oil and Gas Lease Sales Purchase Contract and Sunray will accept payments of various amounts. The payments will be applied toward the purchase of the Abilene Project 1st, Waggoner Estate Project 2nd. Indocan will pay $150,000 on or before May 26, 2006, and a make a payment of $100,000 on or before June 2, 2006. Indocan agrees to have the balance $750,000 paid to Seller by July 31, 2006.
The 15% WI of the Oil and Gas Projects for $1,000,000: (a). It is agreed that the percentages of the Property will be conveyed by recordable Assignment and Transfer Deed. (b). Sunray warrants to Indocan that there will be no existing debts, liens, or other encumbrances against said Property. Sunray additionally warrants that all federal taxes, payroll withholding taxes, federal income taxes, state franchise taxes, and all city and county taxes are current. (c). Indocan will pay for: recordation of deed and prorated share of prepaid insurance, taxes, and interest, if any. (d). Each party will be responsible for his attorney's fees and costs.
Assignment will be made for each Property after Indocan has purchased that Property. If Indocan fails to perform by the terms and conditions set forth in this contract within the time limits set forth herein, Indocan shall own only the percentage in each Property that has been purchased. Sunray will operate the Property and will issue a standard operating agreement (A.A.P.L. Form 610- 1982).
More can be learned at the Company website: www.indocan.com
We seek "Safe Harbor"
Company Info: +1-604-929-7224 Jeffrey R Bruhjell, president
CONTACT: Investor Relations, Ken Ash +1-252-728-2925.
SOURCE Indocan Resources, Inc.
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Jeffrey R Bruhjell
president of Indocan Resources
Inc.
+1-604-929-7224; or Investor Relations
Ken Ash +1-252-728-2925
for Indocan Resources
Inc.
