Mako Hydrocarbons Ltd. (Mako or the Company) is pleased to announce that it has closed an asset sale for $1.75 million with the operator and partner of its regional joint venture in the Rimbey area of west central Alberta, Canada.
The transaction conveys a 40% working interest in the petroleum and natural gas rights below the Rock Creek formation in an outlying 6.25 sections of land (4,000 acres gross; 1,600 hectares gross) to the operator of Mako’s adjoining 30 section block joint venture. This transaction consolidates these additional lands under common ownership and operations to facilitate future economic drilling and development of the property. The prospective target is the liquids rich Duvernay shale formation. The Company retains a 10% working interest in the conveyed property.
This sale advances Mako’s overall regional strategy to manage development risk and maximize risk adjusted returns by engaging participants to assist in the development of the Company’s Duvernay acreage in west central Alberta. The effective date of the sale is August 1, 2012. Proceeds will be used to fund ongoing development and general corporate purposes.