Let’s see if Gary is a crook or a businessman.
UNGS 10k 9/19—->The wells sold to Soligen Technologies, Inc. ("Soligen") are still under the bond of E 3 Petroleum Corp, a wholly owned subsidiary of the Company. Soligen's plan is to re-enter each well to determine what downhole work is needed to place the wells back into production and to stimulate increased production. We anticipate that 3-4 of the wells will be re-entered, re-worked and placed into production by the end of the fourth calendar quarter of 2019. Please see NOTE D
On May 10, 2018, the Company's subsidiary, US Natural Gas Corp KY ("KY"), entered into an Asset Purchase Agreement with Soligen Technologies, Inc. ("SGTN") for the sale of 13 previously producing crude and natural gas wells, approximately 1700 acres of leaseholds, tank batteries and gathering systems (collectively the "assets") all located in multiple counties throughout the State of Kentucky. Under the terms of the Agreement, SGTN acquired the assets for consideration of One Hundred Forty Thousand and no/100 Dollars ($140,000). At Closing, SGTN assigned KY a royalty for payment out of production, whereby KY shall receive thirty percent (30%) of the gross proceeds of production from the acquired assets. In addition, KY shall receive ten percent (10%) of the monthly gross proceeds of production from any new drilled wells on the acquired leases. KY shall receive payments from production until such time that KY has received a total of One Hundred Forty Thousand and no/100 Dollars ($140,000). Please see NOTE D - OIL AND GAS ROYALTY INTERESTS for further information.
