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TN-K Energy Group Inc.
TN-K Energy Group Inc. announces the sale of an Oil and Gas Leasehold.
12/12/2011
On November 14, 2011 TN-K Energy Group Inc. entered into a Contract for Sale of Oil & Gas Leasehold Estate with King's Oil, LLC and K & K Acquisitions, LLC. On December 6, 2011 we closed on this transaction pursuant to which we sold our working interest in the Charles and Lynda Anderson lease in Clinton County, Kentucky, including all well equipment, tanks, pumps, and related equipment, to K & K Acquisitions, LLC for an aggregate cash purchase price of $910,000. Pursuant to the terms of the agreement entered into between our company, King's Oil, LLC and the purchaser, we assigned our working interest in the lease subject to the following:
� we retained a 5% interest in the lease, a 5% interest in certain specific wells and a 10% interest in certain additional wells, which will increase to 10% interest in the lease and a 10% interest in all wells at such time as the purchaser has recouped $850,000 of the purchase price, and
� we agreed to pay or cause to the 20% working interest owners to pay 36.5% of the completion and/or plugging costs on two certain wells.
We presently expect to continue to be the operators of this lease.
We paid legal expenses of $10,000 and a finder's fee to a third party of $50,000 in this transaction. We used $510,500 of the proceeds to satisfy in full Guaranteed Contract entered into in September 2010 with King's Oil, LLC related to this lease. We are using the balance of the proceeds for working capital.
12/12/2011
On November 14, 2011 TN-K Energy Group Inc. entered into a Contract for Sale of Oil & Gas Leasehold Estate with King's Oil, LLC and K & K Acquisitions, LLC. On December 6, 2011 we closed on this transaction pursuant to which we sold our working interest in the Charles and Lynda Anderson lease in Clinton County, Kentucky, including all well equipment, tanks, pumps, and related equipment, to K & K Acquisitions, LLC for an aggregate cash purchase price of $910,000. Pursuant to the terms of the agreement entered into between our company, King's Oil, LLC and the purchaser, we assigned our working interest in the lease subject to the following:
� we retained a 5% interest in the lease, a 5% interest in certain specific wells and a 10% interest in certain additional wells, which will increase to 10% interest in the lease and a 10% interest in all wells at such time as the purchaser has recouped $850,000 of the purchase price, and
� we agreed to pay or cause to the 20% working interest owners to pay 36.5% of the completion and/or plugging costs on two certain wells.
We presently expect to continue to be the operators of this lease.
We paid legal expenses of $10,000 and a finder's fee to a third party of $50,000 in this transaction. We used $510,500 of the proceeds to satisfy in full Guaranteed Contract entered into in September 2010 with King's Oil, LLC related to this lease. We are using the balance of the proceeds for working capital.
TN-K Energy Group Inc. announces the sale of an Oil and Gas Leasehold