Wedgemount Resources to Acquire Additional Central Texas Oil and Gas Assets

Rhea-AI Summary

Wedgemount Resources Corp. announces acquisition of oil and gas assets in the Permian Basin of Texas

Positive

• Wedgemount will acquire 1200 acres of oil and gas leases, 8 producing wells, and 1 injector well
• Current production is approximately 27 barrels of oil per day
• Purchase price is US$650,000, financed with cash on hand and a vendor take back loan

Negative

• None.

Vancouver, British Columbia--(Newsfile Corp. - August 23, 2023) - Wedgemount Resources Corp. (CSE: WDGY) (OTCQB: WDGRF) ("Wedgemount" or the "Company"), is pleased to announce that it has entered into a Purchase and Sale Agreement ("PSA") for the acquisition of additional oil and gas assets (the "Assets") located in the Permian Basin of west central Texas. The PSA is with an arm's length private company (the "Seller") located in Texas, USA.

Highlights:

• 1200 acres including 9 oil and gas leases adjacent to Wedgemount's core area
• 8 producing and one injector well currently producing 27 barrels of oil per day
• Total consideration of US$650,000 comprised of US$50,000 cash and a US$600,000 vendor take back loan ("VTB")
• Non-dilutive to WDGY shareholders as purchase will be financed with cash on hand and VTB loan
• Minimal capital required to significantly increase current production
• Multiple up-hole shallow targets on acreage for potential future growth
• Opportunity to add additional assets in immediate area

Wedgemount will acquire a 100% working interest in 1200 acres including nine oil and gas leases, eight producing and one injector well and all surface facilities. Current production from the eight wells is approximately 27 barrels of oil per day of high quality, low-decline operated production. The area's geology consists of numerous hydrocarbon producing formations which will be targeted by the Company.

"We're excited to announce Wedgemount's third Permian Basin light oil acquisition in our new core area in central Texas," stated Mark Vanry, CEO of Wedgemount. "We believe the new assets offer the same low-cost production upside exhibited by our existing assets. Further, the deal demonstrates the Company's ability to source and execute on low-cost conventional oil acquisitions in central Texas. Field work including chemical treatments and well-workovers are expected to commence immediately upon closing. Additional upside potential includes new zone perfs, and additional wells targeting undeveloped zones."

Terms of the Purchase

In consideration for the purchase of the Assets, Wedgemount will pay the Seller US$50,000 in cash from the balance sheet and a 10%, 24-month take back loan of US$600,000. Wedgemount expects to close the proposed transaction as outlined in the PSA on or before October 31, 2023.

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 US.

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 completion of the acquisition and the proposed timing thereof, the anticipated benefits of the acquisition, the potential for gas production and production from additional zones on the Assets, and potential additional acquisition opportunities in the area of the Assets. 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/178236