Livingstone signs with Sunset Energy

01 September 2007 | 11:47 Code : 15140 Geoscience events
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Livingstone Petroleum subsidiary, Solimar Energy has signed a farmout agreement....

  Livingstone Petroleum subsidiary, Solimar Energy has signed a farmout agreement with Sunset Energy, involving Solimar’s Maricopa and Deer Creek projects, located in the San Joaquin Basin in southern California.Under the agreement, Solimar has agreed to offer to Sunset a 50 percent working interest in the Maricopa and Deer Creek prospect areas in exchange for Sunset agreeing to fund 100 percent of the cost to drill and complete two wells, one on each prospect area. The two wells are to be proposed and drilled within 12 months, with the estimated cost for drilling and completion of the two wells at US$1.45m. Solimar will be the Operator. In addition, Sunset will pay Solimar US$200,000 to partially cover back costs associated with the development of the two projects. Sunset will pay 50 percent of all other future costs and expenses, including leasing, surveying, permitting and seismic associated with these two prospect areas. Livingstone’s Chairman, Frank Petruzzelli said the Sunset farmout agreement was a very good deal for Livingstone shareholders, as it will assist the company with funding the initial drilling on the two prospects “It provides a new partner to share the capital costs and rewards and it permits us to better balance Livingstone’s overall prospect portfolio,” Mr Petruzzelli said.

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