- Wedgemount (WDGY) has completed the first of three payments to acquire certain West Texas, Permian Basin, oil and gas production assets
- The company has completed a payment of US$250,000
- Wedgemount Resources is a junior natural resources company
- Wedgemount Resources Corp. (WDGY) opened trading at C$0.20 per share
Wedgemount (WDGY) has completed the first of three payments to acquire certain West Texas, Permian Basin, oil and gas production assets.
The company has completed a payment of US$250,000. Additional payments of US$500,000 (on or before February 28, 2023) and US$750,000 (on or before March 31, 2023) are scheduled to meet the closing conditions of the transaction.
On closing of the transaction, the vendors will relinquish operator’s status. They will transfer title to the leases and ownership of related surface facilities and equipment to the company’s wholly owned Texas subsidiary, Wedgemount Texas Corp. (WTC). Concurrent with closing, WTC will have earned a 100 per cent working interest in the leases comprising the Project subject to underlying royalties averaging 19 per cent.
Upon closing, vendors will credit WTC with an amount equal to the net oil and gas revenue from the Project. The revenue will be for the period commencing January 1, 2023, and up to the date of closing of the transaction. During this Interim Period, the vendor will conduct operations at the direction of WTC. WTC is responsible for oil and gas production taxes as well as property taxes during the Interim Period.
Wedgemount Resources is a junior natural resources company. It focuses on maximizing shareholder value through the acquisition, discovery and advancement of natural resource projects in North America.
Wedgemount Resources Corp. (WDGY) opened trading at C$0.20 per share.