Initial confirmation that there are larger oil companies getting involved in the Cuba play.....news re Cubacan should be available later in the week.......
"MONTREAL, Quebec, Feb. 13 /CNW/ - Genoil Inc. announces that it has:
1. entered into an agreement with an third party oil and gas company, whereby the
third party will subscribe for 16,845,501 common shares of Genoil at a price
of $0.20 per share, for total proceeds of $3,369,100.20. This would result in
the third party having an interest of at least 50% in Genoil. Alternatively,
should the third party not be satisfied with its due diligence review of
Genoil, it will be obligated to acquire from Genoil a 60% interest in Blocks
19 and 20, onshore Cuba and a 20% interest in Blocks V, VI and VII, offshore
Cuba and it will be granted an option to subscribe for 3,000,000 common shares
of Genoil at a price of $0.20 per share for an 24-month period the whole in
consideration of $3,800,000. The proceeds will be used to pay current
liabilities of Genoil.
2. Genoil has reached an agreement with a SECOND third party oil and gas
company and SGV whereby Genoil offers the following farm-in rights:
I. the right to earn up to a 35% interest in Blocks 19 and 20, in
consideration of the payment of up to 35% of historical costs on
such Blocks; and
II. the right to earn up to a 10% interest in Blocks V, VI and VII, in
consideration of the payment of up to 20% of the cost of a new well
to be drilled an such Blocks.
Finally, upon completion of the equity investment, a new Board of
Directors and Management team will be nominated."
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********Word is that drilling is progressing on schedule at the CCX well, should reach first target depth within 7 - 10 days.****** |
