On March 17, Brownstone Energy Inc. (TSXV: BWN.V) entered an asset purchase agreement with Coachman Energy Partners LLC to sell its Colorado oil and gas property interests, Brownstone said March 18.
Leases in Garfield County, Colo., contain the E. Kokopelli oil and gas wells. The Rio Blanco wellbore in Rio Blanco County is also for sale, as is the company’s interest in any of the properties’ contracts, agreements and data, Brownstone said.
Brownstone will pay Coachman about US$1.9 million in cash due at closing. The price can be adjusted, the company said.
Brownstone will be entitled to production revenues and will take on all costs related to the assets prior to the Jan. 1 effective date. Coachman can also receive production revenues, and will take on all costs related to the assets after the effective date.
The transaction is subject to TSX Venture Exchange approval and other approvals.
Toronto-based Brownstone Energy Inc. holds direct interests in global oil and gas exploration projects.
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