AMAZING ENERGY OIL AND GAS, CO. (OTCMKTS:AMAZ) Files An 8-K Completion of Acquisition or Disposition of Assets
Completion of Acquisition or Disposition of Assets.
Effective January 28, 2019 Amazing Energy Oil & Gas, Co. (“Amazing” or the “Company”) and Wyatt Petroleum, LLC and Wyatt Permian, LLC (together “Wyatt”) finalized the documentation memorializing the acquisition of certain oil and gas leases by Amazing from Wyatt. to the Purchase and Sale Agreement, Amazing acquired working interests in three (3) oil and gas leases identified in the Assignment and Bill of Sale in exchange for a $100,000 cash payment and the issuance of a seller carried note in the amount of one million nine hundred thousand and/no 100 dollars ($1,900,000.00) (the “Note”). The Note has a one-year maturity date and interest shall accrue at seven percent (7%) per annum.
to the transaction, Amazing acquired a fifty-six percent (56%) working interest in two (2) leases and a one-hundred percent (50%) working interest in the third lease (collectively the “Leases”). Devon Energy holds a thirty percent (30%) working interest in 2 of the Leases.
Collectively the Leases cover 16,904 gross and 10,501 net effective acres in Lea County, New Mexico. All acreage is held by production and located in the Permian Basin. Currently, 9 wells are operating on the properties, producing approximately 104 boepd of oil per day. Amazing will be the operator of the properties.
The transaction also includes salt water disposal facilities and a fractional working interest in Wyatt’s assets in Mississippi; known as the Chateau Project. The Company plans to convert the salt water disposal facilities for use with commercial disposal capabilities.
The funds used for the down payment were sourced from Amazing’s operating capital. There are no material relationships between Amazing and Wyatt.
ITEM 7.01 Regulation FD Disclosure
On January 22, 2019 Amazing issued a press release entitled “Amazing Energy Announces Transformational Acquisition of Wyatt Energy’s New Mexico Permian Basin Assets.” A copy of the press release is attached as Exhibit 99.1 and is incorporated herein by reference. The information regarding the press release in this Current Report on Form 8-K (including the exhibit) is furnished to Item 7.01 and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. This current Report on Form 8-K will not be deemed an admission as to the materiality of any information in the Report that is required to be disclosed solely by Regulation FD.
Item 9.01 Financial Statements and Exhibits
The Purchase and Sale Agreement, Assignment and Bill of Sale and Note are included herewith Exhibits 10.1, 10.2 and 10.3 respectively.
Amazing Energy Oil & Gas, Co. Exhibit
EX-10.1 2 ex10-1.htm WYATT PURCHASE AND SALE AGREEMENT DATED JANUARY 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.