News

May 05, 2009

Admiral Bay Resources Adds To Its Core Cherokee Basin Assets Through US$2 Million Acquisition

One advantage of the current downturn is that producing assets are back on the market at realistic prices. With last year’s premiums now looking increasingly silly and cash-strapped operators looking to make sales, this is a time when companies can bag some real bargains. Investors in Admiral Bay Resources are hoping it has made one such deal, having just spent US$2 million on a collection of producing assets in the Cherokee Basin of Kansas.

CEO Steve Tedesco said the deal was “transformational” for the TSX Venture-listed firm.  “It adds meaningful scale to both production and reserves in the Cherokee Basin," said Tedesco.
 
The purchase, from an undisclosed private seller, comprises assets (known as the Thayer properties) that produce some 1.2 million cubic feet per day and contain proved reserves of 8.3 billion cubic feet of gas at the heart of its existing operations in the Cherokee Basin.  This...