Indocan Resources Signs One Million Dollar Deal With Sunray Oil
May 18 2006 - 12:30PM
PR Newswire (US)
BEAUFORT, N.C., May 18 /PRNewswire-FirstCall/ -- The Board of
Directors of Indocan Resources Inc (OTC:IDCN) announces today that
the Company has entered into an Oil and Gas Lease Sales Purchase
Contract with Sunray Oil of Dallas, Texas, to acquire interests in
two different properties. The Properties are located in Taylor and
Wichita Counties, Texas, and are commonly known as the Abilene
Project and the Waggoner Estate Project, described as follows:
Abilene Project 3200 +/- Acres, Taylor County, Texas, 15% Working
Interest (11.25 % Net Revenue Interest) Purchase Price $250,000
USD. Sunray will drill and complete two (2) wells to the depth of
2,800' for the "Turnkey Price" of $250,000 USD. Indocan will
additionally have the "First Right of Refusal" for further
participation in additional wells at the rate of cost plus 20%.
Waggoner Estate Project 880 Acres, Wichita County, Texas, 15%
Working Interest (11.25 % Net Revenue Interest) Purchase Price
$750,000 USD. Sunray will drill and complete a minimum of five (5)
wells and as many additional wells as needed to obtain a minimum
production volume of 500 BOPD and re-work and/or re-complete all
eighty-four (84) existing wells to maximize production for the
"Turnkey Price" of $750,000 USD. The total purchase price of
$1,000,000 for the 15% Working Interest, (11.25 % (NRI) Net Revenue
Interest) is payable as follows: Sunray acknowledges that Indocan
will raise the money (on a best efforts basis) to fund this Oil and
Gas Lease Sales Purchase Contract and Sunray will accept payments
of various amounts. The payments will be applied toward the
purchase of the Abilene Project 1st, Waggoner Estate Project 2nd.
Indocan will pay $150,000 on or before May 26, 2006, and a make a
payment of $100,000 on or before June 2, 2006. Indocan agrees to
have the balance $750,000 paid to Seller by July 31, 2006. The 15%
WI of the Oil and Gas Projects for $1,000,000: (a). It is agreed
that the percentages of the Property will be conveyed by recordable
Assignment and Transfer Deed. (b). Sunray warrants to Indocan that
there will be no existing debts, liens, or other encumbrances
against said Property. Sunray additionally warrants that all
federal taxes, payroll withholding taxes, federal income taxes,
state franchise taxes, and all city and county taxes are current.
(c). Indocan will pay for: recordation of deed and prorated share
of prepaid insurance, taxes, and interest, if any. (d). Each party
will be responsible for his attorney's fees and costs. Assignment
will be made for each Property after Indocan has purchased that
Property. If Indocan fails to perform by the terms and conditions
set forth in this contract within the time limits set forth herein,
Indocan shall own only the percentage in each Property that has
been purchased. Sunray will operate the Property and will issue a
standard operating agreement (A.A.P.L. Form 610- 1982). More can be
learned at the Company website: http://www.indocan.com/ We seek
"Safe Harbor" Company Info: +1-604-929-7224 Jeffrey R Bruhjell,
president CONTACT: Investor Relations, Ken Ash +1-252-728-2925.
DATASOURCE: Indocan Resources, Inc. CONTACT: Jeffrey R Bruhjell,
president of Indocan Resources, Inc., +1-604-929-7224; or Investor
Relations, Ken Ash +1-252-728-2925, for Indocan Resources, Inc. Web
site: http://www.indocan.com/
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