Outrider Energy Corp. Signs Letter of Intent for Farm-In of Pinedale Field Well Locations in Wyoming
March 26, 2014
VANCOUVER, BRITISH COLUMBIA -- Outrider Energy Corp. (CSE:MCF) ("Outrider" or the "Company") is pleased to announce that it has entered into a non-binding letter of intent (the "LOI") with Pinedale Energy Inc. ("Pinedale"). Pursuant to the LOI, the Company proposes to farm-in to Pinedale's interest (18.75% - 21.25% working interest) in certain non-operated oil, gas and other mineral leases in Pinedale Field, Sublette County, Wyoming (the "Leases"). Under the terms of the LOI, the Company will farm-in to the Leases on a well-by-well basis, up to a maximum of 15 wells in exchange for the granting of certain overriding royalty interests to Pinedale and assuming Pinedale's working interest obligations in respect of the wells and Leases. Outrider will grant to Pinedale an overriding royalty interest pre-payout (1.875% - 2.125%) increasing to 9.375% - 10.625% after payout in consideration for the option to farmin (no cash to be paid or shares to be issued). The royalty interest will be free of the costs of production.
"This LOI provides Outrider with an excellent opportunity to participate in a legacy gas field on a well by well basis," commented David Doherty, President and CEO, "We look forward to finalizing the definitive agreements and working to complete this transaction."
The farm-in is subject to, amongst other things, completing due diligence and entering into a definitive farmout or participation agreement. Pinedale is a related party as that term is defined in Multilateral Instrument 61-101. The completion of the transaction will be subject to compliance with that instrument and the policies and requirements of the Canadian Securities Exchange.