TN-K Energy Group Inc. Lead the Negotiations in an Oil Lease Sale of $875,000 in Kentucky and Tennessee and Acquires 5% Overriding Royalty Interest in the Approximate 300 Acre Lease.
CROSSVILLE, Tenn., Dec. 16, 2011 (GLOBE NEWSWIRE) -- TN-K Energy Group Inc. (OTC Markets:TNKY) announced on Friday, December 16,2011 that the company led the negotiations, between the buyers and the sellers, of an $875,000 oil and gas lease sale known as the Chamber lease. The lease, bordering the county lines of Clinton County, Kentucky and Pickett County, Tennessee, is an approximate 300 acre oil lease.
Ken Page, C.E.O. & President of TN-K Energy Group Inc., expressed his excitement in the lease by stating, "The transactions associated with the Chambers lease negotiations were beneficial to all participants involved. The Chambers lease is in a highly productive and proven area within the Sunnybrook, Stones River, Murfreesboro, and Knox formations. These formations are known for their longevity."
By leading the negotiations, TN-K Energy Group Inc. received a finder's fee of $65,000 and a 5% overriding royalty interest in the Chambers lease which includes 6 wells producing an approximate average of 10-20 barrels per day. TN-K Energy Group Inc. also received a participation right up to 30% net revenue working interest in an additional 10 new wells and an option to drill an additional 10 wells. "This was a great opportunity for TN-K Energy Group Inc. to continue its exploratory operations at a minimal operation's cost to the company," summarized Ken Page.