Interesting 8-K from CHAG
No B/A for this grey though.
ITEM 1.01. Entry into a Material Definitive Agreement.
On April 16, 2007, Chancellor Group, Inc. ("we", "us", "Chancellor" or the "Company") closed an acquisition of assets from Caldwell Production Company, Inc. ("Caldwell"), consisting of 48 mineral leases (the "Caldwell Leases") with 631 wells, and in addition purchased an office warehouse facility, equipment consisting of ten pickup trucks, two pulling rigs, a backhoe, a 1.5 ton winch truck and an 80 bbl water truck (the "Caldwell Equipment", and collectively with the Caldwell Leases the "Caldwell Assets"). We executed two purchase agreements with Caldwell--a Purchase and Sale Agreement, dated as of April 9, 2007, by and between our wholly-owned subsidiary Gryphon Production Company, LLC ("Gryphon Production") and Caldwell, for the purchase of the mineral leases (the "Lease Purchase Agreement"), and a Purchase and Sale Agreement, dated as of April 16, 2007, by and between our wholly-owned subsidiary Gryphon Field Services Company, LLC and Caldwell for the purchase of the equipment (the "Equipment Purchase Agreement"). The purchase price for the mineral leases was $5,000,000, and for the equipment $291,500. The oil and natural gas leases purchased are on approximately 8,000 acres in Gray and Carson Counties, Texas.
We also entered into financing agreements, as described below under Item 2.03...
As of December 31, 2006, 60,755,030 shares of common stock were outstanding, and the aggregate market value of the common stock of the Registrant held by nonaffiliates was $0.
________________________________
There is a little black spot on the sun today
AI
