Apr 16, 2024 (MarketLine via COMTEX) --
Next Bridge Hydrocarbons, Inc. ("Next Bridge," "our," "we," or the "Company"), an oil and natural gas exploration and production company with interests in Texas, Louisiana, and Oklahoma, announced today the following:
The Company is pleased to announce the successful closing of another Participation Agreement as part of our ongoing strategy to expand and re-envision our business operations and model.
We have recently closed a Participation Agreement with an undisclosed international buyer to purchase our option to buy 13.33% of the previously announced Valentine Prospect located in Lafourche Parish, LA for an upfront payment of $47,000, with an additional $620,000 payment when certain conditional metrics are met going forward (anticipated mid-Summer 2024).
The Company is also pleased to state that we will retain a 2.6664% of 8/8th working interest after payout on each well drilled on the acreage. This interest is effectively free of the burden of up-front drilling and completion costs and reflects a significant potential long-term value for Next Bridge shareholders.
Additionally, Next Bridge will retain 40% of all of the deep rights below 19,500' which incorporates the Wilcox and Tuscaloosa formations, both highly productive hydrocarbon zones in this region of Louisiana.
The Company continues to work with a world-class geological consulting team who advise us on economic prospects and opportunities such as these. Today's announcement is yet another example of the high standard of excellence in guidance we receive and implement accordingly. Our team believes the deep rights we have retained have excellent potential in the Wilcox and Tuscaloosa formations.
Chairman and CEO Greg McCabe, stated, "As part of our ongoing commitment to re-envisioning our business model, we continue to pursue development and sale opportunities that diversify our economic operations. This Participation Agreement is just the latest triumph in the implementation of this mission. We are truly excited about this transaction, and we look forward to updating our shareholders with much more in the weeks and months to come."
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COMTEX_450974198/2227/2024-04-17T09:20:00
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