Oct 15 2010
Ante5, Inc., a Delaware corporation entered into an asset purchase agreement with Twin City Technical, LLC, a North Dakota limited liability company, and Irish Oil and Gas, Inc., a Nevada corporation to acquire Sellers' right, title, and interest in mineral leases on approximately 3,712 net acres in consideration for a total of $2,969,648 of cash, payable in full at the closing, plus 5,011,281 shares of the common stock of the Company.
Sellers are reserving a 2% overriding royalty interest in the Mineral Leases, with the Company receiving a minimum of a 78% working interest. The closing of the purchase and sale of assets will occur upon the satisfaction or waiver of the conditions set forth in the APA on October 29, 2010 unless Sellers and the Company mutually agree in writing to extend the closing date or Buyer unilaterally extends for up to 15 days.
"Due to recent horizontal Bakken and Three Forks Formation discoveries, Williams County, ND has quickly become targeted as one of the more actively leased counties in North Dakota," stated Terry Harris, President of Twin City Technical, LLC. "All these oil and gas leases were newly acquired in 2010 with the majority having terms of three or more years."
Ante5, Inc. CEO Steve Lipscomb added, "The non-operating oil and gas model has proven to be an efficient means of deploying capital with strong investor returns. This is a unique opportunity for Ante5, Inc. to put current and future cash to work for shareholders."