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| Home : Troy Energy Corp. Announces Execution of Formal Farmout Agreement and up to $12,600,000 Non-Brokered Financing |
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Oct 13
2012 |
Troy Energy Corp. Announces Execution of Formal Farmout Agreement and up to $12,600,000 Non-Brokered Financing |
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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 12, 2012) - Troy Energy Corp. (the "Corporation" or "Troy") (NEX BOARD:TEG.H) is pleased to announce that is has executed a formal agreement in connection with its previously announced farm-in in respect of Guatemala Production Sharing Agreement 4-93 (the "Production Sharing Agreement"), an oil and gas production sharing agreement covering approximately 174,000 hectares in the South Peten Basin of Guatemala (such lands are referred to as the "License Lands" and the foregoing is collectively referred to as the "Transaction") (for further details, please refer to the Corporation's press release dated July 26, 2012). Whereas the binding letter of intent in respect of the Transaction (the "LOI") was entered into between Troy and Coban Petroleum Ltd. ("Coban"), a private Alberta corporation, the formal farmout agreement has been entered into among Troy, Coban, Ceiba Petroleo S.A. ("Ceiba"), a private Guatemalan corporation that is is a party to the Production Sharing Agreement, and Truestar Petroleum Corporation ("Truestar"), a British Columbia corporation that is Ceiba's parent company. Other than adding Ceiba and Truestar to the agreement (with Ceiba, as farmor, farming out a portion of its rights, entitlements, interests and obligations in and to the Production Sharing Agreement), the conditions, interests earned and commercial terms remain largely consistent with the binding LOI. The formal farmout agreement, which is dated October 9, 2012 (the "Farmout Agreement"), varies from the LOI in that each of Troy, Coban and Truestar will, respectively, earn working interests in the License Lands and Production Sharing Agreement via Ceiba. |
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| Source:http://www.marketwire.com/mw/release.do?id=1712936&sourceType=3 |
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