Armada Oil Inc. (OTCBB: AOIL) said that a recently closed asset reallocation financing, made with private energy investment group Gulfstar Resources LLC, which put a lot of capital into Armada’s operating area in south Louisiana “will continue to generate a high level of activity” in the area and elsewhere, the company said Feb. 18.
In Armada’s south Louisiana operating areas, workover activity on wells LLDSB #4 and LLDSB #30 was completed, while another well, LLDSB #1—in the Lake Hermitage field—was converted to a saltwater disposal well, the company said. This converted well should save $60,000 to $80,000 a month, the company added.
“We are excited about the ramp up in activity in south Louisiana and look forward to announcing additional acquisition and drilling activities in our other operating areas soon,” said Randy M. Griffin, CEO.
Monies from the financing’s B and C tranches—totaling $11,250,000—will fund a Niobrara test well in the company’s Wyoming operating area, as well as drilling and acquisitions elsewhere, the company said.
The Niobrara test well will be drilled in late spring, the company said. The company is evaluating, for acquisition, some producing properties, Armada added.
Additionally, the company noted that its chief operation officer, David L. Freeman, will step down from that role in order to become president of TNR Holdings LLC, a subsidiary dedicated to south Louisiana operations.
He will make this change "in order for those activities to be efficiently and appropriately managed," the company added.
Armada Oil, based in Dallas, is an oil and natural gas E&P company working in Louisiana, Oklahoma, part of New York state and Wyoming.
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