From reading this, does this actually say that Pilgrim is selling active wells to another company? It says that Frontier will own all the gas and the rights? So how does pilgrim make out in all of this? Or am I misinterpreting this?
Frontier Energy Signs Letter of Intent to Acquire Two Leases in Archer County, Texas
Thursday May 29, 10:52 am ET
NORTH LAS VEGAS, Nev.--(BUSINESS WIRE)--Frontier Energy Corporation (“Frontier” or the “Company”)(Pink Sheets:FRGY) is pleased to announce today that it has entered into a letter of intent to purchase two leases in Archer County, Texas.
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Pursuant to this agreement, American Petroleum Corporation assigns 100% of the working interest to Frontier Energy for the development and production of the current active wells and future developments in the area. Frontier Energy Corporation will be entitled to all of the ownership of all rights to gas, oil or other minerals as they occur naturally in place at or below the surface of this tract of the land.
The closing of the definitive agreement is subject to the approval of the board of directors of Frontier Energy and the completion of the due diligence documents associated with the purchase. Further details of this agreement will be disclosed as soon as the terms and conditions of the agreement have been finalized.
The best estimate for the prospective resources has been 1,831,000 barrels of recoverable oil based upon the engineering reports and geological assessment. This information has not been proven yet and further reports and work will have to be done to confirm these numbers in detail once the acquisition is complete.
“We are very optimistic about the prospects of this agreement with American Petroleum Corporation, and we are looking forward to our relationship with them as the operator of this project. We feel that this relationship brings with it a great advancement in our ability to produce revenue from this property, as well as a larger scale opportunity for our shareholders with the scale of this prospect,” stated Mr. Robert Genesi, CEO of Frontier Energy Corporation.
About Frontier Energy Corp.
Frontier is an exploratory oil and gas business headquartered in Las Vegas, Nevada. The goal of Frontier Energy is to build a solid portfolio of assets through the acquisition of leases and explore and develop the opportunities on the individual leases.
Except for the historical information presented, the above statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 or regulations there under. These forward-looking statements are subject to risks and uncertainties, and actual results may differ materially. These risks include the economic health of the oil and gas industry, competitive pricing pressures, completion of possible acquisitions, success at integrating and operating any acquired operations and the availability of necessary financing. These statements speak only as of above date, and Frontier Energy Corp. disclaims any intent or obligation to update them.
