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CALGARY, March 4 /CNW/ - Emerald Bay Energy Inc. (TSX Venture: EBY) (the "Corporation") is pleased to announce that it and a private partner have acquired 100% of the issued and outstanding securities of Production Resources Inc. ("PRI"), a private, Texas based oil company. The Corporation acquired its 50% interest in PRI for USD$425,000.
Information about the Acquisition
Under the terms of the purchase agreement, the Corporation will issue, subject to the final approval of the TSX Venture Exchange, 5.0 million common shares (at $0.08 per share for aggregate proceeds of CDN$400,000) of the Corporation, along with an 18 month consulting agreement totaling USD$36,800 to the seller, for a 50% interest in PRI. The seller will also retain a 1% gross overriding royalty on any formation below 1,200 feet.
PRI's assets are made up of oil wells producing approximately 30 bbls of oil per day, 75 in-fill drilling locations with multiple oil targets, and service equipment to be a complete, self-sustaining field operation.
"The acquisition of PRI provides Emerald Bay with quality, low-risk oil assets for development. The upside of the un-drilled acreage is tremendous, and with the service equipment, it drastically reduces our operating costs. We look forward to providing a more in-depth overview of this property in the coming days after we have received the necessary regulatory approval," stated Shelby Beattie, President and CEO.
Emerald Bay Energy Inc., based in Calgary, is a junior oil and gas producer with production properties in Western Canada and South Texas. The common shares of Emerald Bay trade on the TSX Venture Exchange under the symbol "EBY". Please visit our website at www.emeraldbayenergy.com.
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SOURCE Emerald Bay Energy Inc.
For further information: For further information: Emerald Bay President, Shelby D. Beattie, by telephone at (403) 262-6000 or by email at firstname.lastname@example.org; or CHF Investor Relations: Catarina Cerqueira, Associate Account Manager, (416) 868-1079 x251, email@example.com; Robin Cook, Senior Account Manager, (416) 868-1079 x228, firstname.lastname@example.org