Wedgemount Resources Closes Permian Basin Asset Acquisition

Rhea-AI Summary

Wedgemount Resources Corp. has closed its TCS light oil acquisition in the Permian Basin of Texas. The company paid US$50,000 and signed a US$600,000 vendor take back loan for a 100% working interest in the Assets. Wedgemount plans to optimize the assets to increase production and recoveries.

Vancouver, British Columbia--(Newsfile Corp. - November 1, 2023) - Wedgemount Resources Corp. (CSE: WDGY) (OTCQB: WDGRF) ("Wedgemount" or the "Company"), announces that it has closed its recently disclosed (refer to press release dated August 23, 2023) TCS light oil acquisition (the "Assets") located in the Permian Basin of west central Texas, USA.

The Company completed a payment to the arm's length vendor (the "Seller") of US$50,000 and signed a US$600,000 vendor take back loan ("VTB") for a 100% working interest in the Assets subject to a 20% underlying royalty. The VTB will mature on November 1, 2025, and will pay interest at an annual rate of 10%. The Seller has relinquished operator's status and has transferred title of the nine oil and gas leases in addition to all surface facilities to Wedgemount's subsidiary, Wedgemount Texas Corp. ("WTC").

Wedgemount plans to commence field optimizations on the newly acquired Assets starting in late November. Work will include chemical treatments, well workovers and surface facility improvements with the goal of increasing both production and overall recoveries similar to previous work done on the Company's Willowbend and Millican leases.

About Wedgemount Resources Corp.

Wedgemount Resources is a junior oil & gas company focused on maximizing shareholder value through the acquisition, development and exploitation of natural resource projects in the southern USA.

On behalf of the Board of Directors,
WEDGEMOUNT RESOURCES CORP.

Mark Vanry, President and CEO

For more information, please contact the Company at:
Telephone: (604) 343-4743
info@wedgemountresources.com
www.wedgemountresources.com

Reader Advisory

This news release may contain statements which constitute "forward-looking information", including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Forward-looking statements made in this news release include the anticipated benefits of the acquisition, the potential for gas production and production from additional zones as a result of the acquisition. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities and involve risks and uncertainties, and that the Company's future business activities may differ materially from those in the forward-looking statements as a result of various factors, including, but not limited to, availability of funds, personnel and other resources necessary to conduct exploration or development programs, successes of the Company's exploration efforts, availability of capital and financing and general economic, market or business conditions. There can be no assurances that such information will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. The Company does not assume any obligation to update any forward-looking information except as required under the applicable securities laws.

Neither the Canadian Securities Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/185827

FAQ

What did Wedgemount Resources Corp. acquire?

Wedgemount Resources Corp. acquired the TCS light oil assets located in the Permian Basin of Texas.

How much did Wedgemount Resources Corp. pay for the acquisition?

Wedgemount Resources Corp. paid US$50,000 for the acquisition.

What is the vendor take back loan (VTB)?

The vendor take back loan (VTB) is a US$600,000 loan signed by Wedgemount Resources Corp. for the acquisition.

What is the maturity date of the vendor take back loan?

The vendor take back loan will mature on November 1, 2025.

What is the annual interest rate of the vendor take back loan?

The vendor take back loan will pay interest at an annual rate of 10%.

What will Wedgemount do with the newly acquired assets?

Wedgemount plans to commence field optimizations on the newly acquired assets starting in late November. This includes chemical treatments, well workovers, and surface facility improvements with the goal of increasing production and overall recoveries.