CALGARY, AB and SAN ANTONIO, TX / ACCESSWIRE / February 3, 2020 / Emerald Bay Energy Inc. (TSXV:EBY)(OTC:EMBYF) (the “Company”, “Emerald Bay” or “EBY”) reported today that the Company has acquired assets mainly comprising 30 oil and gas leases currently producing approximately 15 bbs/day of oil (the “Acquired Leases”) on approximately 3,550 acres, in the LaVernia Field of Wilson and Guadalupe Counties, Texas and certain related lease equipment (including but not limited to wellheads, pumpjacks, surface equipment, down-hole equipment, casing storage tanks, drillpipes, pumps, motors) from Advantagewon Oil Corp. (CSE: AOC) (“AOC”).
The purchase price paid to AOC for the assets is USD$350,000 which shall be paid via: (i) a cash payment of USD$50,000; and (ii) the issuance of 39,027,000 common shares (the “EBY Shares”) of EBY (USD$300,000 USD being CDN$390,270 at $0.01/share), subject to final approval from the TSX Venture Exchange.
The EBY Shares issued to AOC will be held in escrow by EBY until December 31, 2020. On or before December 31, 2020, Emerald Bay (or its designee) may acquire the EBY Shares for an aggregate USD$300,000. Should EBY elect not to acquire the EBY Shares (or should the TSX Venture Exchange not approve the issuance of the EBY Shares to AOC), then the EBY Shares will be returned to EBY’s treasury and the balance of the purchase price for the assets will be paid via an overriding royalty interest on the Acquired Leases being granted to AOC as follows: (i) a 5% overriding royalty interest on all the Acquired Leases with a net revenue interest of 75.0% or greater; (ii) a 2% overriding royalty interest on all the Acquired Leases with a net revenue interest of 72.0% up to, but not including, the Acquired Leases with a net revenue interest of 75.0% (note: no overriding royalty interest shall be assigned to AOC on all the Acquired Leases with a net revenue interest less than 72.0%). The overriding royalty interest shall be in place until such time as AOC has received an aggregate USD$400,000.00 at which point the royalty interest shall be terminated.
Shelby Beattie, President and CEO of the Company commented: “The acquisition of the LaVernia assets represents the culmination of a process that began more than 10 months ago. We targeted this acquisition because we believe that we have identified numerous exploration opportunities, both vertically and horizontally, in the Navarro, Poth, Austin Chalk, and Eagle Ford formations. This is very exciting for us as this is the first time we have acquired this large of a land position in South Texas with Emerald Bay owning a 100% working interest.”
About Emerald Bay
Emerald Bay Energy Inc. (TSX Venture: EBY, OTC: EMBYF) is an energy company with oil producing properties in Southwest Texas as well as non-operated oil and natural gas interests in Central Alberta, Canada. EBY is the operator of the Wooden Horse and Nash Creek Projects in Guadalupe, Texas, where the Company currently owns a 50.00% working interest those projects. Additionally, the Company owns and operates various working interests in the HugoCellR, Cotulla, and MarPat partnerships. The Company also owns 75% of Production Resources Inc., a South Texas oil company.
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SOURCE: Emerald Bay Energy Inc.
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