United Hunter Oil & Gas to acquire assets in South Texas, US

United Hunter Oil & Gas (UHO) has signed a mutual agreement with Vesta Resources and others to acquire several producing and drillable prospects in South Texas, US.

The deal was signed through the company’s US subsidiary, United Hunter Texas (UHT), and includes the acquisition of a working interest operatorship in two producing wells and 100% working interest in eight additional prospects for $400,000.

The sale proceeds will go towards clearing other working interest owners' interests in title and pending debts.

Following the transaction, UHT's working interest in the producing wells will vary between 25% and 43%, with the prospect of earning a net revenue interest between 18.75% and 35%.

The additional prospects being acquired will include a 100% working interest and 75% net revenue interest.

UHO CEO Timothy Turner said: "We are very excited to begin operations in Texas and aim to grow production and shareholder value, through the addition of complementary low-cost producing assets.

“The acquisition of these assets will allow UHT to continue to assess similar acquisitions and we look forward to growing our asset base as we implement our business strategy of acquiring low-cost projects with predictable and promising revenues."

Meanwhile, multiple leases have already been acquired and drill sites of some prospects have been cleared and prepared for drilling.

The company noted that all of the prospects are classified as exploitation or development prospects, located close to or adjacent to either existing or previously existing production.

The final purchase and sale agreements are subject to due diligence, which will be undertaken by UHT over the next several weeks.

It also includes negotiation of the purchase price, UHO board approval, financing and TSX Venture Exchange approval.