AURCANA RECEIVES PAYMENT FOR OIL & GAS LEASES
July 20, 2016
Vancouver, BC, July 20, 2016, Aurcana Corporation (the “Company”) (TSXV: AUN; OTC: AUNFF) announces that its wholly-owned subsidiary, Silver Assets, Inc. (“SAI”), has entered into a term assignment agreement (the “Assignment”) with a privately-owned, Texas-based oil and gas firm (the “Assignee”). Under the Assignment, three contiguous oil and gas leases (the “Leases”) have been assigned by SAI to the Assignee for a three-year term, plus any further period during which oil or gas production takes place on the Leases. SAI has retained a Net Revenue Interest Royalty in respect of the Leases that may provide up to 25% of the net revenues therefrom. In consideration of the Assignment, the Assignee made a cash payment of US$374,469.41 to SAI. The Leases total 564 “mineral acres” and are located approximately 200 miles northeast of the Company’s Shafter project, in the Permian Basin of West Texas, near Midland.
In 2008 the Company acquired SAI as part of a share purchase transaction to acquire an indirect interest in the Shafter silver project held by SAI’s subsidiary companies. SAI has a long corporate history that can be traced back to 1932 through a series of predecessor companies. It was very active in the oil and gas industry from 1977 through 1995, at which time it sold most of its oil and gas assets, retaining only a few non-producing leases. At the time of the transaction to acquire the Shafter silver project, the oil and gas leases were considered non-material and have remained so.
Kevin Drover, President and CEO of the Company noted that “this Assignment has presented the Company with the opportunity to access a potential near-term revenue stream by placing non-core assets with an established operator in the Permian Basin. It is anticipated that this transaction could assist the Company financially as it focuses upon the redevelopment of the Shafter silver project. We intend to continue our review of SAI’s other oil and gas holdings and may complete similar transactions if and when opportunities arise.” http://aurcana.com/news/2016/index.php?&content_id=401