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Goldeneye Enters Into Farmout Agreement

 

April 1, 2014: Vancouver, BC – Goldeneye Resources Corp. (TSXV: GOE) (the “Company” or “Goldeneye”) is pleased to announce that it has signed a farmout agreement (the “Agreement”) with Range Resources (NYSE: RRC, the “Farmee”) for the Company’s leasehold interests in section 23-5N-8ECM and section 7-5N-9ECM, Cimarron County, Oklahoma (the “Property”). 

The Agreement provides that the Farmee will, on or before May 1, 2014, commence the drilling of a horizontal well for oil and/or gas on the Property to an approximate depth of 9,400 feet or a depth sufficient to test the Mississippian formation, whichever is lesser.  After drilling has reached the targeted depth, the Farmee will either initiate completion of a well as a producer of oil and/or gas in commercial quantities (an “Earning Well”) or plug and abandon the well as a dry hole. 

Upon completion of an Earning Well, the Farmee will be entitled to an assignment of the oil and gas leases held by the Company within section 23-5N-8ECM.  The Company will retain a proportional overriding royalty interest on the net production produced from within these leased lands.

Under the Agreement, the Farmee also has the option to drill a second well, under the same terms and conditions as the first well, on section 7-5N-9ECM within 90 days of the date of the Agreement.  If the Farmee does not drill a second well, the Agreement will terminate and the Farmee will have no further rights under it except those interests previously earned.  The cost of each horizontal well is approximately US$6.0 million.

The Company retains three additional sections not included in the Farmout Agreement.  John A. Reeves, Jr., CEO, stated, “We are very pleased to be working with such a reputable organization as Range Resources to develop two sections of our leasehold properties.  We are also continuing our efforts to attract a JV partner to drill  three additional vertical wells on our additional 100% held leases and are currently in discussions with a number of  potential partners.”

ON BEHALF OF THE BOARD
John A. Reeves, Jr., CEO

We seek safe harbor.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.