Rio Bravo Oil, Inc. (OTCBB: RIOBD.OB) has acquired Pan American Oil Company, LLC in exchange for issuance of 5,500,000 shares of the Company's Series A Convertible Redeemable Preferred Stock and assumption of approximately $3,000,000 of Pan American liabilities.
As a result of the transaction, Pan American became a wholly-owned subsidiary of the Company. The transaction was the first step in the execution of the Company's strategy to acquire interests in the oil and gas industry. As a part of the Pan American transaction, the Company acquired a minimum of 63.5% working interest in the Luling Edwards Fields and an option to purchase a 15% working interest in the Bateman field.
Each interest is subject to a 20% carried interest in favor of a third party. The Company currently has plans to drill two new wells in the Edwards formation within the next six months.
Recommended Reading
Asia Spot LNG at 3-month Peak on Steady Demand, Supply Disruption
2024-04-12 - Heating demand in Europe and production disruption at the Freeport LNG terminal in the U.S. pushed up prices, said Samuel Good, head of LNG pricing at commodity pricing agency Argus.
Exclusive: Chevron Balancing Low Carbon Intensity, Global Oil, Gas Needs
2024-03-28 - Colin Parfitt, president of midstream at Chevron, discusses how the company continues to grow its traditional oil and gas business while focusing on growing its new energies production, in this Hart Energy Exclusive interview.
Imperial Expects TMX to Tighten Differentials, Raise Heavy Crude Prices
2024-02-06 - Imperial Oil expects the completion of the Trans Mountain Pipeline expansion to tighten WCS and WTI light and heavy oil differentials and boost its access to more lucrative markets in 2024.
Midstream Builds in a Bearish Market
2024-03-11 - Midstream companies are sticking to long term plans for an expanded customer base, despite low gas prices, high storage levels and an uncertain political LNG future.
Exclusive: Renewables Won't Promise Affordable Security without NatGas
2024-03-25 - Greg Ebel, president and CEO of midstream company Enbridge, says renewables needs backing from natural gas to create a "nice foundation" for affordable and sustainable industrial growth, in this Hart Energy Exclusive interview.