Elk Petroleum’s
(ASX:ELK) acquisition of a 14% working interest in the Madden Gas Field, Madden Deep Unit Gas Field and Lost Cabin Gas Plant in Wyoming, USA, has closed.
This follows the oil and gas company’s payment of a US$2 million deposit and US$10 million closing payment to subsidiaries of US mining company, Freeport-McMoRan Inc.
Elk still needs to make a final payment of US$5.5 million to the Freeport subsidiaries by 15 July 2017, though its acquisition is effective as of 1 January 2017.
As a result of this transaction, Elk is now a gas producer, with forecast 2017 positive free cash flow of over US$7 million.
This morning, shares in Elk are tracking 1.33% higher at 7.6 cents.
