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| | Wed Mar 4, 2009
Derek Negotiates Royalty Agreement Extension
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| | Derek Oil and Gas Corporation today reported that it has extended an agreement relating to a 3.375% royalty interest covering various tracts of acreage located on the Company's LAK Ranch oil project located in Weston County Wyoming.
The extension agreement eliminates a prior commitment to produce an average of six hundred barrels a day for a continuous period of six months by March 2009 and extends the royalty period to November 9, 2019 for consideration of $US25, 000 cash and the issuance of 700,000 shares to the original royalty holders.
In addition to the cash payments and share issuance above the Company also agreed to pay effective May 1, 2009, a bonus payment for each month that cumulative production from the property is less than 600 barrels of oil per day. The bonus payment is calculated as the total realized oil price from the sale of oil for the month less $70 times the number of barrels of oil produced and sold.
Derek Oil & Gas Corporation is a Canadian based, publicly traded oil exploration, development and production company that utilizes enhanced oil recovery techniques to develop new production from reservoirs in North America. Derek's current focus is on the further development and increasing production from their prime property located in NE Wyoming's prolific Powder River Basin.
Derek Oil & Gas Corporation is trading in Canada on the TSX Venture Exchange with the symbol DRK
ON BEHALF OF THE BOARD
"Signed"
Mr. Barry C.J. Ehrl, President and C.E.O.
For further information please contact Derek's Corporate Communications Department at:
Telephone: 1-888-756-0066 or (604)-331-1757
Corporate E-Mail: info@derekoilandgas.com
Website: http://www.derekoilandgas.com |
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