SYDNEY: Fremont Petroleum Corporation Ltd announced that it expects to complete the Purchase and Sale Agreement (PSA) of the portfolio of producing oil and gas leases located in the Illinois Basin from Indiana-based Trey Exploration Inc. in the next week using existing cash reserves.
This transaction was first reported on 18 June 2020. As previously reported, Trey holds highly prospective production leases and a portfolio of conventional wells that are currently producing 71 barrels of oil per day in the states of Indiana, Illinois and Kentucky.
Production can be enhanced through low-cost workovers and other field activities, and they add scale to the Company’s Kentucky operations, which are also being worked over for enhanced production.
CEO Tim Hart commented: “Finalising this PSA in the coming days is a priority for Fremont. We have re-visited all of the Trey leases in the past week and our confidence in these assets continues to grow both in terms of current production and the upside we can deliver through enhancements. Once we have completed the acquisition we will provide shareholders with a comprehensive overview of the leases and their full potential.”
Fremont Petroleum Corporation Limited (ASX: FPL) is an Oil & Gas production and development company with operations in Colorado and Kentucky. The Company’s focus is to aggressively grow daily production by improving current asset performance and opportunistically acquiring onshore USA oil & gas assets with the following characteristics: producing conventional oil & gas wells; production can be enhanced through low-cost field operations and workovers; leases are held by production and do not require ongoing drilling commitments; and, economies of scale can be achieved by acquiring and enhancing similar assets nearby.