Replies to post #47 on TN-K Energy Group Inc. (fka TNKY)

[Timothy Smith]

TN-K Energy Group Inc. Completes $4.8 Million Transactions That Included the Sale of an Oil Lease and Acquires 5% Overriding Royalty Interest in 6 Leases Totaling Approximately 1200 Acres

Apr 23, 2012 6:53:00 AM
2012 GlobeNewswire, Inc.

TN-K Energy Group Inc. is proud to announce the completion of a $4.8 million two part transaction, which included the sale of its 27.5% Working Interest in the Clark leases and the acquisition of 5% Overriding Royalty interest in the Blaydes, Ervin, Hickerson, Simmons, Pansy Clark and JR Clark leases.

CROSSVILLE, Tenn., April 23, 2012 (GLOBE NEWSWIRE) -- TN-K Energy Group Inc. (OTCBB:TNKY) today announced that the company led the sales and negotiations, between the buyers and sellers, of a $4.8 million two part transaction. The first part of the transaction involved the sale of its own 27.5% working and operating interest in existing production and the checkerboard participation rights known as the J.R. Clark and Pansy Clark leases, of approximately 700 acres, in Green County, Kentucky. TN-K retained 5% overriding royalty interest in existing production and received a 30% drilling participation right of the total undeveloped acreage in which the Company previously had only a checkerboard agreement. (Checkerboard agreement means the rights to only every other well to be drilled)

The second part of the transaction, which TN-K led, TN-K received a substantial commission, acquired 5% overriding royalty interest in the Blaydes, Ervin, Hickerson, and Simmons leases existing production, and up to 30% drilling participation rights on all new wells to be drilled on these leases for only the cost of drilling. The leases are located in Green County, Kentucky and total approximately 500 acres.

Ken Page, C.E.O. & President of TN-K Energy Group Inc. expressed his excitement in the transaction by stating, "TN-K has substantially increased our working capital, retained and gained drilling rights to some of the most highly producing and proven areas in the state of KY. The company has estimated these acquired drilling rights, which were of no cost through these negotiations, at a significant value. When considering our transactions over the past four months, it is safe to say that TN-K is focused on establishing a good source of revenue and the funds to further develop and acquire new leases that can increase our production."