Each one in plain English, with the numbers worked through for a shareholder.
13 June 2005material agreement▲ GoodMajor
Petrogen acquired a 100% working interest and 70% net revenue interest in the 822-acre Tiller Ranch Lease in the Tom Graham Field, Jim Wells County, Texas, from Capital Exploration under a June 3, 2005 assignment. It paid an initial sum (amount not stated), and would forfeit its payments and have to reassign the lease if it fails to perform. The first well must be spudded by the fourth quarter of 2005 unless extended. The company says it anticipates six drilling locations and potentially up to 18 BCFG recoverable, which are company estimates.
Petrogen doubled its working interest in the Emily Hawes Field project on Matagorda Island, Texas, to 75% (58.125% net revenue interest), and bought the island's natural gas pipeline on March 31, 2005 from James Roche. It paid with 175,000 restricted shares valued at $87,500, plus a per-mcf royalty on gas transported. The company says this lets it move its own gas and other operators' gas. This builds on the Texas Gulf Coast focus after the earlier Oklahoma assets were pared back.
Now named Petrogen Corp. and based in Houston, the company closed a private placement of 7,284,000 units for $1,821,000 on September 20, 2004. Each unit has one share, a half warrant at $0.50 and a piggyback warrant at $1.00. The company says about $1.2 million of advances payable were converted into equity, and that debt has gone from about $2.4 million at March 31, 2004 to none. It also says cash is over $1.5 million and a 12-well drilling program started in late August. New shares and warrants mean dilution for existing holders.
