CALGARY, Alberta, Sept. 21, 2017 (GLOBE NEWSWIRE) — Tanager Energy Inc. (“Tanager” or the “Corporation”) (TSX-V:TAN) (OTCQB:TANEF) is pleased to announce that Tanager has completed a transaction with Vision Resources, LLC and affiliates (“Vision”) and Pantheon Resources PLC and affiliates (“Pantheon”) concerning certain properties and prospects in Polk County, Texas. Pantheon Resources PLC is an AIM-listed company traded on the London Exchange under the symbol “PANR”.
The transaction resolved potential mineral title disputes concerning 2,132 acres of the Vision/Pantheon Woodbine prospect acreage in the I. Pate Survey, A-467, in Polk County, Texas. Tanager’s JV partner and operator Paleo Oil Company, LLC (“Paleo”) released substantial claims to ownership under the Vision/Pantheon Woodbine prospect acreage position to secure the benefits described below.
As a result of the transaction and in exchange for a mutual release for all potential claims arising from the title dispute:
- Tanager acquired an undivided fifty percent (50%) working interest in over 18,000 gross acres of undeveloped mineral leases in Polk County, Texas covering certain “shallow rights” (to include the Yegua formation), with minimal lease term remaining. Among the leases acquired were leases covering portions of Tanager’s Ranger, Stampede, Sidekick and Jones prospect areas.
- Tanager’s one percent (1%) working interest in the Vision/Pantheon Woodbine prospect acreage was confirmed and acknowledged. Additionally, Tanager will own a one percent (1%) back-in-after-payout working interest in the Vision Operating Blackstone Minerals Unit #1 (API #42-373-31295) (“VOBM #1”) and #2H (API# 42-373-31305) (“VOBM #2H”) wells that have already been drilled and completed in the I. Pate Survey (A-467), Polk County, Texas. Pantheon previously reported that the VOBM #1 well encountered 62 feet of net pay, at a depth of 14,200 feet, and that the well flowed natural gas at a stabilized flow rate of 6,145 mcfpd (with a calorific value of 1,100 BTU/cubic foot) and 504 bbls oil per day on a 12/64ths choke with a flowing tubing pressure of 7,350 psi. (http://www.pantheonresources.com/index.php/news-media/press-releases/2015/481-completion-of-testing/file). Well test information has not been released for the VOBM #2H well. The most recent operational update for the VOBM #2H is available at http://www.pantheonresources.com/index.php/news-media/press-releases/2017/538-operational-update-14-september-2017/file.
- Tanager increased its undivided seventeen percent (17%) working interest to a fifty percent (50%) working interest in the 600 acre offset tract to its Cain-Carter #1 lower Woodbine formation well and unit, a tract which formed the basis for a portion of Tanager’s undeveloped proved and probable Woodbine formation reserves.
- Tanager paid no cash consideration in connection with this transaction. Acreage assigned to Paleo pursuant to the terms of the transaction will be contributed to the JV pursuant to the terms of the parties’ Exploration Agreement and Area of Mutual Interest (“AMI”) on a market value basis not to exceed US$475 per net mineral acre contributed.
Tom M. Crain, Jr., interim CEO of Tanager, stated, “Tanager is very pleased with the outcome of our complex and protracted negotiations, and we look forward to a great working relationship with Vision and Pantheon. As a result of the transaction, we have nearly tripled our interest in proved and probable Woodbine reserves attributable to our undeveloped 600 acre tract in the Pate Survey, and secured contractual rights to access important technical data from Vision and Patheon’s mature Woodbine formation exploration program. This data will materially assist us in our Woodbine development program. Tanager also secured a significant Yegua formation leasehold position, some of which was core prospect acreage for our recent Yegua discoveries.”
Tanager Energy Inc. is an oil and natural gas and mineral exploration company headquartered in Calgary, Alberta, with executive offices in Houston, Texas. The Corporation’s common shares are listed on the TSX Venture Exchange under the trading symbol “TAN” and OTC as “TANEF”.