The directors and management of Strata-X Energy Ltd. (“Strata-X” or the “Company”) (TSX-V:SXE) (ASX:SXA) announce that the Company is disposing of a historical working interest in an oil and gas lease (“Lease”) located in Campbell County, Wyoming USA. The Company has determined that the Lease is a non-core asset and plans to use available capital on advancing its core assets such as the Serowe CSG Project in the Republic of Botswana and the evaluation of new ventures.
The Company is entering into Assignments of Oil and Gas Lease Agreement (“Agreements”) with Officers of the Company, being the Company’s Chief Executive Officer, Tim Hoops and its Chief Financial Officer, David Hettich. The Officers will collectively acquire the Company’s rights to the Lease with the Company retaining a royalty interest in the Lease. As Mr. Hoops and Mr. Hettich as officers of the Company and are ‘related parties’ to the Company within the meaning of Multilateral Instrument 61-101 Protection of Minority Securityholders in Special Transactions (MI 61-101), the transaction, as it relates to Mssrs Hoops and Hettich is a ‘related party transaction’ within the meaning of MI 61-101. The terms of the Assignment of Oil and Gas Lease Agreement are identical and no consideration will accrue to the Company as a result of the Assignment of Oil and Gas Lease Agreement (“Agreement”). By assigning out this non-core project to third parties, the Company will retain a net 2.5% royalty interest after payout in the Lease.
So it was released to Mssrs Hoops and Hettich for no consideration, yet we retain a 2.5% royalty? I don't have time currently, but can anyone dig up what SXA paid for this lease?
All we seem to do is acquire core assets, flip them off when they stop being shiney, rinse and repeat. I would have expected more for a company that has Prefontaine on the board. The money he has made me in the past is now long gone with this company. Is anything happening in Illinois? Seemed like money for jam, even at US$50 a barrel.
I wonder if Mssrs Hoops and Hettich are obliged to move on this lease now, or if they can sit on it until POO improves? Question for the board?
SXA Price at posting:
3.4¢ Sentiment: None Disclosure: Held
