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Archer Petroleum (V.ARK) closes acquisition agreement

Stockhouse Editorial
0 Comments| August 19, 2013


Archer Petroleum Corp. (TSX: V.ARK, Stock Forum) said that it has closed the purchase and sale agreement with Arrakis Oil Recovery, LLC, a subsidiary of Imperial Petroleum, Inc. (IPMN, Stock Forum), for the acquisition by Archer of a 25% interest in the Peak project.
 
The Peak project, located in Logan county, Kentucky, is comprised of certain lands included in mining permit application Number 071-9702, which are subject to a joint venture between Arrakis, privately-held Peak Concepts, LLC and Phoenix Metals, Inc., a subsidiary of Reliance Steel & Aluminum Co. (RS, Stock Forum).
 
According to the Archer Petroleum press release, pursuant to the acquisition agreement, Arrakis agreed to sell a 25% interest in the Peak joint venture to Archer in consideration for the issuance of 500,000 common shares of Archer and US$300,000 of expenditures being incurred on the operations of the Peak joint venture, which expenditures shall be incurred on a timeline to be mutually agreed upon by Arrakis and Archer, provided that Archer shall not be required to expend more than US$50,000 in the six months following closing of the acquisition.
 
The membership interests in the Peak joint venture are held as to 25% by Arrakis, 25% by Archer, and 50% by Peak.
 
Archer is an independent energy company focused on exploration and development in North America.

On Monday morning, Archer was trading at $0.375 a share. The company had a market cap of $12.3 million, based on 32.4 million shares outstanding.

Tags: OIL & GAS E&P

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