Elk Petroleum Limited (ASX:ELK) is focused on enhanced oil recovery projects in the Rocky Mountains of the U.S.
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Elk Petroleum finalises deal to secure cash flow in 2017
Elk Petroleum (ASX:ELK) has executed a closing agreement to acquire a 14% interest in the Madden Gas Field, Madden Deep Unit Gas Field and Lost Cabin Gas Plant in Wyoming, U.S.
The acquisition is forecast to generate positive net operating cash flow of over US$7 million per annum to the company.
The circa 14% non-operating interest in the gas assets is being acquired from subsidiaries of Freeport-McMoRan.
Under the final closing agreement, the parties have agreed on a reduced acquisition price of US$17.5 million, down from US$20 million, and a revised closing date of 17 March 2017.
A US$2 million deposit was paid in January and financing has been arranged to fund future payments.
Other Elk Petroleum news
- Elk Petroleum Ltd closes US$58M financing with Benefit Street Partners
- Elk Petroleum Ltd to close restructure and financing simultaneously
- Elk Petroleum Ltd moves closer to securing US$58M loan facility
- Elk Petroleum Ltd agrees funding terms with Benefit Street Partners
- Elk Petroleum Ltd launches $30.7M raising to complete Grieve