Stanton Ross ( A PCTL distributor) buys even more oil leases. The last paragraph mentions that his company also has experience as an "oilfield services company".
LENEXA, KS, May 19, 2022 (Globe Newswire) — American Noble Gas Inc. (OTC-QB: IFNY) (“AMGAS” or “The Company”) is pleased to announce that it has acquired 60.7143% in GMDOC, LLC, a Kansas Limited Liability Company (“GMDOC”), which Previously an Oklahoma Limited Liability Company (“Castelli”), has acquired working interests in certain oil and gas leases (“GMDOC Leases”) from Castelli Energy, LLC. GMDOC leases include approximately 10,000 acres of land located in southern Kansas near the Oklahoma border. GMDOC Lease currently produces approximately 100 barrels of oil per day on a gross basis and 1.5 million cubic feet of natural gas per day.
On May 3, 2022, AMGAS entered into an operating agreement of GMDOC (“Operating Agreement”), pursuant to which the Company acquired 17 (or 60.7143%) of 28 limited liability membership interests (“interests”) in GMDOC. Total purchase price of $4,037,500, and subsequently accepted as a member of GMDOC.
GMDOC acquired 70% of the working interests in GMDOC Leases from Castelli. GMDOC is managed by two other members — Darrah Oil Company, LLC, a Kansas limited liability company, and Grand Mesa Operating Company, a Kansas corporation (“managing member”) — each of whom serve as operating companies under GMDOC leases. Works in me too. ,
In accordance with the terms of the operating agreement, each member agreed to pay GMDOC as its capital contribution, $50,000 in cash per interest, with the remainder by loan to GMDOC from a bank secured by GMDOC’s oil and gas lease assets. will be financed. , in a total amount of $6,045,000. The principal of the bank loan is to be repaid in 84 separate monthly installments beginning July 1, 2022, ranging from $170,000 at the beginning to $40,500 at the end of the loan term. The bank loan carries a variable interest rate with an initial rate of 6% per annum with a rate adjustment after 36 months, subject to a minimum interest rate of 6%. The initial working capital was financed, in part, by a loan to GMDOC from a Managing Member, with a maximum total amount of $400,000, to be repaid over 12 months and interest at 6% per annum.
In respect of its cash capital contribution, the company paid a non-refundable cash deposit for interest in the amount of $50,000 on May 3, 2022, and paid the remaining cash contribution, or $800,000, for interest on May 16, 2022 . The company’s remaining capital contribution, or $3,187,500, was financed by bank loans.
The company funded the cash contribution by way of issuance of 8% senior unsecured convertible promissory note due June 29, 2022 to two institutional investors. The company issued a total of 425,000 shares of common stock to these two institutional investors as additional consideration for such notes.
Management Comment:
Stanton E. Ross, President and CEO of AMGAS, said that “We are delighted to join a team with Darrah Oil Company, LLC and Grand Mesa Operating Company, renowned industry leaders, particularly in Kansas and Oklahoma. where these oil and gas leases are located. The underlying leases are currently generating positive cash flow and include substantial future growth opportunities. I think it is very clear that GMDOC, a commercial bank We are very pleased with our ownership position in such a prolific package of oil and gas leases and will continue to explore similar opportunities. ” Mr. Ross said. Mr. Ross concluded: “In line with our commitment to the sector and our aim to grow our long noble gases, this partnership will deliver immediate revenue and results to our shareholders.”
Will Darah, a third generation oil and gas producer and manager of Darah Oil, said that “At Darah Oil, we pride ourselves on leading the way in energy and we believe that natural gas is an important fuel of the future. Impressed with the team and excited to work with them on this project which we believe delivers good current cash flow with internal upside potential.
American Noble Gas, Inc. About this:
In April 2022, AMGAS acquired participation rights in a definitive farmout agreement (“Farmout Agreement”) to explore and develop natural gas, helium and salty minerals inside the Hugoton Gas Fields in Haskell and Finney County, Kansas. AMGAS has a 40% interest in the farmout agreement which includes drilling and completion of up to 50 wells. The initial exploratory well was drilled in May 2022 and is currently scheduled to be completed in June 2022. Early exploratory wells revealed encouraging results for natural gas and helium reserves.
In April 2021, AMGAS took over production and mineral rights/lease of approximately 11,000 acres of oil and gas assets at the Otis/Albert Field located on the Central Kansas Uplift. Prior to this acquisition, AMGAS was involved in oil and gas exploration, development, and production of natural gas and oil in the Rocky Mountain region of Texas and the United States, and was an oil field services company based in eastern Kansas, northern Oklahoma. Colorado and Wyoming before December 2012. AMGAS was founded in 1987, is headquartered in Lenexa, Kansas, and its common stock is listed on OTC-QB under the symbol “IFNY”. The company’s financial statements and additional information are available on the Internet www.otcmarkets.com and on the SEC’s website www.sec.gov,
