Over $255,000 and nearly 30 million Nuenco shares will be exchanged for 661,607 Statesman shares, it said.
Statesman is a 12.5% farmin partner of a joint venture, currently drilling the North Yowlumne-1 well in the San Joaquin Basin California with partners Ivanhoe Energy (USA) Inc (56.25% working interest), Salinas Energy Limited (25% working interest), and NEG (6.25% working interest).
Statesman is paying 25% well costs to earn a 12.5% working interest in about 6,000 acres of leases covering the prospect. The well, to be drilled to a planned total depth of 12,500 feet (3810m), will test a large, 3D defined Stevens Sand objective. Interpretation linked the prospect to the adjacent 113-million barrel Yolumne Oil Field.
Production wells at the Yolumne Field have flowed more than 2,000 barrels of oil per day (bopd) and produced up to 4 million barrels of reserves per well, Nuenco said.
As recently announced by Salinas Energy Limited, the mapped prospect, called the South Buena Vista Prospect, has the potential to contain over 100 million barrels of recoverable oil, Nuenco said.
The first well, North Yolumne-1, to test this prospect started drilling last Friday, December 16, and will take about 35 days to drill on a trouble-free basis, according to the company.
Nuenco managing director Anthony Kain said the Statesman investment was a strategic move for the company.
“We are pleased to have developed our interest in the well after looking at it at the end of last year and not being able to come to agreement on commercial terms,” Kain said.
“This investment through Statesman gives Nuenco material exposure to success with the well and/or the development of this prospect. With an average entry price below C$2.00 per share - Statesman has approximately 3,000,000 shares on issue and last traded at C$2.60 per share – the company believes it is well placed for this upside.”
Nuenco has paid A$255,208.94 and agreed to issue 29,411,937 Nuenco shares in exchange for to acquire it’s 19.9% interest in Statesman Resources Ltd.
