AMAZING ENERGY OIL AND GAS, CO. (OTCMKTS:AMAZ) Files An 8-K Completion of Acquisition or Disposition of Assets
Item 2.01
AMAZING ENERGY OIL AND GAS, CO. (OTCMKTS:AMAZ) Files An 8-K Completion of Acquisition or Disposition of Assets
On November 22, 2019 Amazing Energy Holdings, LLC (“AEH”) a wholly-owned subsidiary of Amazing Energy Oil & Gas, Co. (together with AEH, “Amazing” or the “Company”) closed on the acquisition of assets consisting of certain oil and gas leases encompassing approximately nine hundred (900) acres, nine (9) oil wells and a saltwater disposal well, all located in Mississippi and generally known as the “Denver Mint Project.” Amazing acquired the Denver Mint Project from multiple parties for approximately three million fifty thousand dollars ($3,050,000).
A copy of the third-party reserve engineering report covering the Denver Mint Project and completed by Moyes & Company is attached hereto as Exhibit 96.1.
On November 22, 2019 Amazing closed on a financing transaction whereby the Company sold an overriding royalty interest, in and to the Denver Mint Project (the “Denver Mint ORRI”), for the total aggregate sum of four million five hundred thousand and no/100 dollars ($4,500,000). The proceeds of the sale of the Denver Mint ORRI were allocated approximately $3,050,000 toward the acquisition of the Denver Mint Project (See Item 2.01) and the balance of approximately one million four hundred thousand ($1,400,000) toward working capital for the Company.
to the Denver Mint ORRI, Amazing will provide total aggregate production of one hundred forty-six thousand four hundred seventy (146,470) barrels of oil (the “Total Production”) to the Denver Mint ORRI recipient over a period of forty-eight (48) months (the “Production Schedule”). The Production Schedule also provides for monthly production requirements, beginning in February, 2020, which range from 280 barrels per month to 4,560 barrels per month (the “Monthly Production”). Once the Monthly Production is met each month the Company retains one hundred percent (100%) of seventy-five percent (75%) of the remaining production.
On November 26, 2019 the Company issued a Press Release announcing the acquisition of the Denver Mint Project (See Item 2.01) and the sale of the Denver Mint ORRI (See Item 8.01). A copy of the Press Release is attached hereto as Exhibit 99.1.
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About AMAZING ENERGY OIL AND GAS, CO. (OTCMKTS:AMAZ)
Amazing Energy Oil and Gas, Co. is an independent energy company. The Company is engaged in the business of exploration, development and production of oil and gas in the Permian Basin of West Texas. The Company is also engaged in the production and sale of oil and natural gas. The Company is developing resource potential from the Queens formation. Its additional drilling targets include the Greyburg, San Andreas and Devonian zones. As of July 31, 2016, the Company had leasehold rights within approximately 70,000 contiguous acres in Pecos County, Texas, which lies within the Permian Basin. The property is located in the Northeast region of the County. The Pecos leasehold lies within the White & Baker Field and portions of the Walker Field. The Pecos leasehold consists of multiple leases. As of July 31, 2016, its estimated net proved reserves were 745,190 barrels of oil equivalent (BOE). As of July 31, 2016, the Company owned 22 oil and gas wells in the Permian Basin.