Thursday, 19 February 2015 03:20 PM
CALGARY, AB / ACCESSWIRE / February 19, 2015 / Century Energy Ltd. (TSX Venture: CEY.H) ("Century") is pleased to announce that it has entered into a letter of intent dated February 15, 2015 with Orchard E&P, LLC, a California limited liability company ("Orchard"). The letter of intent sets out the terms of the proposed acquisition by Century of all of Orchard's interests in certain oil and gas leases on the Sespe Field, located in Ventura County, California (the "Property"). Orchard holds a net 80% working interest in two leases on the Sespe Field.
The leases are located on the south-western extension of the main Sespe Field which was discovered in 1887. To date, the field has produced over 27 million barrels of oil from primarily the Sespe Formation. The main field encompasses over 5,120 acres where over 400 wells have been drilled, including 13 wells on the area of the lease that produced a total of 1.5 million barrels of oil at depths ranging from 900 to 2042 feet. None of those wells are currently producing. Century is proposing to conduct further exploration and analysis with the object of drilling two wells in the next 12 months.
Pursuant to the letter of intent, Century proposes to acquire the Property from Orchard by paying for US$25,000 and issuing 1,500,000 common shares of Century. Century will receive a limited right of refusal over any sale of assets or outstanding equity interests of Orchard. Century will also be granted an option to acquire all of the outstanding equity interests of Orchard from its parent company, Pegasus Holding Group, Inc., at fair market value for a period of 24 months from the date of the letter of intent.
On closing of the transaction, Roger Hamson will become the President and Chief Executive Officer of Century and join the board of directors of the Company. Mr. Hamson is the current President of Orchard. He has over 31 years of industry experience including 19 years with Unocal as a facilities & process engineer, 7 years as offshore engineer, asset manager and VP with Venoco and as a construction engineer and engineering manager in Myanmar and the Philippines. He holds a Bachelor in Science in Petroleum Engineering from Montana Tech.
Closing of the transaction is subject to the parties entering into a binding definitive agreement and stock exchange approval. Century and Orchard are at arm's length to each other.
For more information, contact:
John Anderson
President, Chief Executive Officer and Director
Telephone: (805) 710-5090
Email: [email protected]
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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SOURCE: Century Energy Ltd.