Form 8-K for CHANCELLOR GROUP INC/
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10-May-2010
Completion of Acquisition or Disposition of Assets, Financial Statements an
Item 2.01 Completion of Acquisition or Disposition of Assets.
On May 6, 2010, Gryphon Production Co., LLC (the "Subsidiary"), a wholly-owned subsidiary of Chancellor Group, Inc. and Charlie Heater, d/b/a H 5 Producers, a sole proprietorship ("Seller"), entered into a Purchase Agreement (the "Purchase Agreement") made to be effective as of May 1, 2010, pursuant to which the Subsidiary will purchase all of the oil, gas and casinghead gas leasehold estates of Seller located in Hutchinson County, Texas, and all or substantially all of the equipment, structures and personal property located upon the land subject to such leasehold estates and used in connection with Seller's oil and gas operations. This transaction is expected to close on or before May 24, 2010. The purchase price of the transaction is $150,000. In addition, Subsidiary agreed to pay Seller for 97.44 total barrels of crude petroleum, less production taxes, at the then-posted price in the Texas Panhandle, such payment to be made by Subsidiary from proceeds received by Subsidiary from its sale of the first load of oil from the purchased leasehold estates.
The summary above does not purport to be complete and is qualified in its entirety by reference to the actual text of the Purchase Agreement as filed as Exhibit 10.1 to this Current Report on Form 8-K (incorporated herein by reference).
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