In a news release, Torchlight Energy Resources Inc. (TRCH:NASDAQ) announced that it and McCabe Petroleum Corp. (MPC), owned by Torchlight Chairman Greg McCabe, agreed to sell their cumulative interest in the Winkler project in the Delaware Basin for $450,000. The two entities closed a letter agreement with the project's operator.
Torchlight is to receive $350,000, and the remaining $100,000 is to be allocated to MPC. Per the agreement, MPC will have the amount due to it paid to Torchlight, in exchange for 313,480 shares of Torchlight common stock.
Also per the arrangement, Torchlight and MPC, within 90 days, may introduce a third party offer for the Winkler project stake. "If the offer is accepted and the consideration received from the third party in such transaction, as allocated to the assets purchased from Torchlight and MPC, exceeds the $450,000 purchase price described above, then Torchlight and MPC are to receive a fee equal to one half of the positive difference between the purchase prices," the company stated in the release.
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