Calgary, Alberta (FSCwire) - Emerald Bay Energy Inc.
(the “Company”or“Emerald Bay”) today announced that the Company has entered into agreement whereby Emerald Baywill increase its interest in Production Resources Inc. (“PRI”) from 10% to 75% by acquiring from Tire Oil & Gas Inc. their 65% interest in PRI for $1,727,000 U.S ($2,314,180 CDN). During the year ended 2016 PRI had an average daily production rate of 60 bbls/day.
PRIis a Texas based company with its main assets located south of San Antonio Texas, being two producing oil fields, in Bexar, Atascosa and Medina counties. PRI has its own field operating equipment, including two service rigs, which gives PRI the ability to maintain efficient operations and control costs effectively. With more than 40 surveyed drilling locations for future development, Emerald Bay will work with PRI to optimize current production while putting plans in place to drill new wells.
Emerald Bay considers this acquisition to be a key step in establishing a production base in South Texas as the Company moves forward with the next phase of development of its Wooden Horse and Nash Creek plays.
Emerald Bay will use funds from the previously announced (see press release dated June 6, 2017) loan agreement with L&K Tire Inc. to facilitate this purchase. The acquisition has an effective date of June 1, 2017.
About Emerald Bay
Emerald Bay Energy Inc. (EBY)is a diversified energy company with oil producing properties in southwest Texas as well as natural gas and electricity generation projects in Central Alberta, Canada. EBY is the operator of the Wooden Horse and Nash Creek Projects in Guadeloupe, Texas, where the Company currently owns a 27.78% working interest in those projects. In addition, the Company has numerous non-operated working interests in oil and gas properties in Central Alberta. The common shares trade on the TSX Venture Exchange under the symbol "EBY". Please visit www.ebyinc.com for more detail.
For further information, please contact:
Emerald Bay President, Shelby D. Beattie, by telephone at (403) 262-6000 or by email at info@ebyinc.com
