Adelaide Energy Limited ("ADE") announces that its offer to purchase Victoria Petroleum USA Inc., a wholly owned subsidiary of Victoria Petroleum N.L. has been accepted by Victoria Petroleum N.L. Under the terms of the offer, Adelaide Energy Limited will pay A$3,300,000 to Victoria Petroleum N.L., subject to completion of a Sale and Purchase Agreement and satisfactory due diligence. Adelaide Energy would retain the Victoria Petroleum USA Inc office and key management personnel as an ongoing entity in Denver, Colorado.
Victoria Petroleum USA Inc holds significant exploration, development and producing oil and gas assets in the USA which include the West Florence Oil Project. The purchase will give ADE a major interest and operatorship in the area of 12,000 acres and one producing oil well. The other assets include the Flour Bluff and Margarita producing gas assets in onshore Gulf Coast,Texas, the Vallecitos oil field in California and the Hal oil field in Wyoming.
The purchase of the US assets will provide the Company with access to the current net revenue stream of in excess of A$1,000,000 per annum with further potential for large upside in highly prospective areas. “We are delighted to have the opportunity to secure these producing and highly prospective assets in areas where there is access to infrastructure, times from discovery to sales are short and in to a market with a strong demand for oil and gas”, Adelaide Energy’s Managing Director, Mr Carl Dorsch said today.
About Victoria Petroleum USA Inc.
The company owns the following Production and Development Properties:
• The parent, Victoria Petroleum N.L. is offering all the producing and development properties in Texas, California, Colorado and Wyoming for sale as one package by the purchase of Victoria Petroleum USA Inc.
• Effective date to be 1 July 2008
• Properties in Texas, California, Colorado and Wyoming
• TEXAS : onshore Gulf Coast : Flour Bluff and Margarita gas fields producing an approximate gross of 3 million cubic feet of gas per day plus exploration prospects
• COLORADO : West Florence Project with 12,000 gross acres and one producing well – 15 million barrel potential
• CALIFORNIA : Vallecitos oil field plus development and exploration acreage of around 22,000 acres and 6 million barrel oil potential
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