PHOENIX, AZ / ACCESSWIRE / May 14, 2024 / PetroSun, Inc (OTC PINK:PSUD) (the "Company") announced today that a new Farmout Agreement has been reached with Pivot Point Energy, Inc covering approximately 207,663 acres located in the Holbrook Basin of Navajo and Coconino counties. A previous agreement with the Company covering this acreage was dated May 18, 2023 with JAYD Ventures LLC and has been in default and was terminated on April 30, 2024.
The terms and conditions of the Pivot Point Energy Farmout Agreement provides PetroSun with a $2,500,000 leasehold fee payable on or before June 12, 2024, a drilling commitment of two test wells based on seismic and a carried twenty-five percent working interest on the two test wells and the initial three development wells.
Pivot Point Energy will receive a seventy-five percent working interest participation covering the approximately 207,663 acres, a three-year extension of the base lease that is payable by PetroSun from the leasehold fee and an Area of Mutual Interest (AMI) that extends three miles from any lease line.
The primary resource target on the North and South Winslow 207,663-acre farmout will be helium from multiple formations down to basement. The secondary resource targets are oil from the Permian Fort Apache and natural gas from the Devonian that were encountered in the 26-1 well tested by a PetroSun subsidiary near the North and South Winslow leasehold.
After the receipt of the leasehold fee, seismic lines will be shot to develop the initial test well locations for the exploration program.
"The proceeds from the original Farmout Agreement were designated to retire the corporate debt of the Company and advance its Holbrook Basin helium program. The new Farmout Agreement will now allow the Company to achieve those goals. In my opinion and that of other contributing petroleum geologists during the past 25 years, the Central Holbrook Basin and the North and South Winslow areas in the western portion of the basin have always held the most promise for large accumulations of helium. It has been PetroSun that has controlled these areas during that timeframe, limiting helium exploration to other parts of the Holbrook Basin by several qualified operators. It is now the time to see what the Holbrook Basin has been concealing," stated Gordon LeBlanc, Jr, Executive Chairman, CEO and President.
About PetroSun
PetroSun, Inc. is a fully integrated energy and mining business focusing on Lithium, Zeolite Clays, Rare Earth Elements, Mine Tailings, Helium, Natural Gas and Water Processing through the use of cutting-edge technologies, a broad portfolio of assets and leases, and a management team with decades of research, development, and production experience. PetroSun is vertically integrated with control of all aspects of the business from exploration and production to delivery to end users, providing customers direct customized solutions and shareholders maximum returns by participating in profitability at each stage in the supply chain.
PetroSun, Inc. owns significant leasehold acreage that is prospective for helium exploration and production in the Holbrook Basin of Arizona and for natural gas and helium in the Paradox Basin of Utah. The Company holds mineral leases on approximately 280,000 gross acres in the Holbrook Basin and Pedregosa Basin of Arizona and over 26,000 gross acres in the Paradox Basin. PetroSun's greatest assets are its shareholders, partners, advisors, employees, and its patented and proprietary technologies. We seek to provide global solutions to some of the most critical challenges the world faces today and into the future.
The Company trades on the OTC Pink Sheets under the symbol "PSUD".
For additional information:
Contact PetroSun at mallison@petrosun.us
Forward-Looking Statements Disclaimer:
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. In some cases, you can identify forward-looking statements by the following words: "anticipate", "believe", "continue", "could", "estimate", "expect", "intend", "may", "ongoing", "plan", "potential", "predict", "project", "should", "will", "would", or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainty and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this press release. This press release should be considered in light of all filings of the Company that are disclosed on the OTC Market.com website.
Contact:
PetroSun, Inc.
2999 North 44th Street, Suite 620
Phoenix, Arizona 85018
480-425-4290
Website: www.petrosun.us
SOURCE: PetroSun, Inc.
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