Lexaria Purchases Producing Oil Assets in Mississippi

- Lexaria Purchases Producing Oil Assets in Mississippi

Friday, August 12, 2011
Lexaria Corp.

Lexaria has acquired certain producing oil assets within its core operating area in Wilkinson County, Mississippi.

Lexaria has purchased all of the 10% gross working interest held by Brinx Resources Ltd, in the Belmont Lake Oil Field and in other oil and gas assets in the area. As a result of this acquisition, Lexaria now owns between 42% and 50% gross working interest in the four producing oil wells at Belmont Lake, and 42% in any future development wells to be drilled therein. At the current time, plans are to drill two more PUD development wells at Belmont Lake this season, subject to a number of conditions.

Basic terms for the acquisition of the 10% gross working interest in the Belmont Lake Oil Field and assorted other nearby oil and gas assets, are a purchase price of $400,000 of which $200,000 is paid, and another $200,000 payment is due by November 12, 2011; and the issuance of 800,000 shares of restricted common stock of Lexaria Corp.

"This acquisition will produce an immediate increase in our oil revenue, and an increase in our proved oil reserves," said Chris Bunka, President of Lexaria Corp. "It is sensible for us to increase our ownership in the Belmont Lake oil field where we have built a wealth of knowledge and experience in recent years, as we prepare to leverage that knowledge."

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QGEP Purchases Shell Stake in Santos Basin

- QGEP Purchases Shell Stake in Santos Basin

Tuesday, July 05, 2011
QGEP Participacoes S.A.

QGEP Participacoes announced that Queiroz Galvao Exploracao e Producao S.A. ("QGEP"), a wholly owned subsidiary, has entered into a purchase and sale agreement for the acquisition of 10% of Shell Brasil Petroleo Ltda's participating interest in Block BM-S-8 located offshore in the Santos Basin. Shell currently owns a 20% working interest in the block, which is operated by Petrobras, and owned by a consortium comprised of Petrobras, Petrogal and Shell.

The transfer of Shell's participating interest to QGEP is subject to approval by the ANP.

"This farm-in agreement demonstrates our strategy of building value by investing in high quality assets that diversify and strengthen our portfolio," said Jose Augusto Fernandes Filho, QGEP's Chief Executive Officer.

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Petronas Purchases $1.1B Stake in BC Shale Assets

- Petronas Purchases $1.1B Stake in BC Shale Assets

Thursday, June 02, 2011
Progress Energy Resources Corp.

Progress Energy has executed a binding framework agreement to create a strategic partnership with the Malaysian national oil company, Petronas, to develop a portion of Progress' Montney shale assets in the Foothills of northeast British Columbia. Progress will sell 50 percent of its working interest in its Altares, Lily and Kahta properties (the "North Montney Joint Venture") to Petronas for $1.1B (CDN $1.07 billion). The agreement also reflects the desire by both parties to explore additional opportunities to develop liquefied natural gas (LNG) export capacity in British Columbia.

"This is a breakthrough transaction for Progress: the partnership we are launching will enable us to accelerate our growth strategy," said Michael Culbert, President and Chief Executive Officer of Progress. "We are very pleased to form this long-term partnership with Petronas. They share our belief that our North Montney shale assets are a world-class resource that deserves significant investment. We look forward to benefitting from Petronas' significant global expertise including their leadership in developing infrastructure and accessing LNG markets. As well as enhancing Progress shareholder value, this partnership will also generate substantial economic benefits for local communities and the province of British Columbia, while leveraging the environmental benefits of Canada's abundant and clean-burning natural gas resources globally."

Under the terms of the framework agreement, Petronas will pay 25 percent of the total consideration (CDN $267.5 million) in cash at closing and 75 percent of the total consideration in the form of a capital carry whereby Petronas will pay 75 percent of Progress' share of future capital expenditures in the North Montney Joint Venture over the next five years to a total of CDN $802.5 million. The Transaction provides Progress with the capital required to accelerate the development of its unconventional assets and unlock the value underlying the Company's vast Montney land holdings.

In addition to the above Transaction, Petronas and Progress will establish an LNG export joint venture (the "LNG Export Joint Venture") to be 80 percent and 20 percent owned, respectively. The LNG Export Joint Venture will launch a feasibility study to evaluate building and operating a new LNG export facility on the West Coast of British Columbia. PETRONAS would be the operator of this facility, and Petronas and Progress would jointly market the LNG utilizing Petronas' well-established and extensive network of customers in the largest LNG markets globally.

"Canada is poised to take a larger role on the world's energy stage. Developing new export options for Canadian natural gas producers is a logical step in connecting our vast resources with growing Asian demand for environmentally responsible energy sources like natural gas," said Mr. Culbert. "We look forward to working with West Coast British Columbia communities as we pursue this opportunity to build a new facility that will add value to British Columbia's natural resources while creating considerable long-term local economic benefits."

In connection with the LNG Export Joint Venture, Petronas will provide a standby equity financing commitment of up to $600 million, for Progress' capital requirements arising from the North Montney and LNG Export joint ventures from which Progress can draw down at the time of a successful LNG final investment decision.

The North Montney Joint Venture comprises 149,910 working interest acres in which Petronas will acquire a 50 percent interest and Progress will be the operator. The North Montney Joint Venture lands represent approximately 20 percent of Progress' rights in its northeast British Columbia Foothills land holdings, which total approximately 700,000 net acres. Progress holds approximately 900,000 net acres of Montney rights over its entire British Columbia and Alberta land base, making it one of the largest Montney land rights holders. The joint venture properties include five wells with minimal production at this time.

The closing of the transaction is subject to the execution of definitive agreements and receipt of regulatory approval. BMO Capital Markets acted as exclusive financial advisor to Progress on this transaction.

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Treaty Purchases 2 Producing Leases in Tx.

Treaty Purchases 2 Producing Leases in Tx.

Wednesday, April 20, 2011
Treaty Energy Corp.

Treaty Energy has acquired two additional leases in Texas, the SHOTWELL W. F. and the SHOTWELL "C" leases.

Treaty indicated that production on these leases is currently 4.18 barrels of oil per day. These leases require no work over and were purchased for their current production value, but more important to Treaty Energy is the additional 30 virgin well drilling sites which will be added to the list of wells that Treaty's new Failing 1500 CF Drilling Rig will start drilling when permits are granted to do so. Private financing to fund the drilling had been arranged prior to the acquisition of the Failing Drilling Rig.

Stephen L. York, Treaty Energy's Vice President of Acquisitions and Operations, stated, "These leases are two of the most advanced small leases in the Country. Scientific evaluations have been done as an experiment to see what can be achieved with a maximum effort and scientific approach. Fluid levels have been 'shot,' water flooding plains logged, and geology available."

Mr. York stated further, "The upside to this acquisition is that Treaty now has an additional 138 acres to drill on, which represents 30 or more virgin well sites."

Treaty Energy's CEO and Chairman, Andrew V. Reid, stated, "I am very pleased with the progress Steve is making on the development of Treaty Energy's rapidly growing base of leases and production of oil in Texas."

Treaty indicated that it will follow with an SEC Form 8-K on a timely basis, which will include all aspects of this purchase.