Wedgemount Resources to Acquire West Texas Permian Basin Oil and Gas Assets 

Highlights: 

• Building a new light oil focused Permian Basin oil and gas opportunity with current production, cash flow and significant growth potential. 
• Minimal capital requirements to significantly increase current production. 
• Stable low decline production base with low operating costs. 
• Potential to activate and optimize previously shut-in natural gas production. 
• Identified significant secondary shallow target in unexploited channel sand formation accessible through conventional drilling. 
• Partnered with local Texas turn-key oil field services operator with 20+ years track record including direct experience on target assets. 
• Significant opportunity to add more assets in the immediate area. 

Wedgemount will acquire a 100% working interest in 640 acres including five leases, eleven producing wells and all surface facilities. Current production from the eleven wells totals 25 barrels of oil per day of high quality, low-decline operated production. The area’s geology consists of numerous hydrocarbon producing formations which will be targeted by the Company. The acquisition exhibits the flexibility in Wedgemount’s business.

Terms of the Purchase 

In consideration for the purchase of the assets, Wedgemount will pay the Seller US$1.5 million. The purchase is subject to the completion of due diligence by Wedgemount, the execution of a definitive agreement and receipt of all necessary regulatory approvals. The Company expects to finance the acquisition through cash on hand and a private placement of equity securities. Wedgemount expects to close the proposed transaction before the end of 2022.