The Company completed a payment to the arm’s length vendors of US$250,000 with additional payments of US$500,000 (on or before February 28, 2023) and US$750,000 (on or before March 31, 2023) scheduled to meet closing conditions of the Transaction. On closing of the Transaction, the vendors will relinquish operators status and transfer title to the leases and ownership of related surface facilities and equipment to the Company’s wholly owned Texas subsidiary, Wedgemount Texas Corp. (" WTC "). Concurrent with closing, WTC will have earned a 100% working interest in the leases comprising the Project subject to underlying royalties averaging 19%. Conditional to closing, WTC will be credited by the vendors with an amount equal to the net oil and gas revenue from the Project for the period commencing January 1, 2023 and up to the date of closing of the Transaction (the " Interim Period ") which amount will be reconciled by vendor via a settlement statement rendered within 60-days of closing of the Transaction. During the Interim Period, the vendor will conduct operations at the direction of WTC. WTC is responsible for oil and gas production taxes as well as property taxes during the Interim Period. Separately, the […]
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