VANCOUVER, Sept. 17, 2016 /CNW/ – Petromin Resources Ltd. (Petromin) announces that it has entered into an agreement to sell, assign and convey its’ Redwater assets to the operator, Rifle Shot Corp. (Rifle) and has completed the transfer as of September 17, 2016.
The consideration payable by Rifle shall be an absolute discharge and forgiveness of all monies outstanding and owing for all lease operation and all Capital Charges both incurred or intending to be incurred.
Rifle shall also indemnify and hold harmless Petromin from all Abandonment and Reclaimation Obligations and Enviromental Damages whether current, prior or subsequent to the effective date.
The Redwater wells have become uneconomic for Petromin to maintain as they near depletion and this Agreement will indemnify the Company from all current and future Abandonment Liabilities including a recent Abandonment Notice from the Operator for well 09-36-055-21 W4.
Petromin et al will retain their 18.21 per cent working interest in the Viking formation on these lands plus Petromin et al has an additional 1280 acres of Viking rights in the Redwater Area for a total of 1920 acres.
Petromin Resources Ltd. (TSXV: PTR) is an oil and natural gas exploration and production company listed as a Tier 1 issuer on the TSX Venture Exchange. The Company is currently focused on its core operations, which include four oil and natural gas properties in central Alberta, Canada along the Western Canada Sedimentary Basin.