PYR Energy to acquire assets of Venus Exploration

By OGJ editors
HOUSTON, Apr. 14 -- PYR Energy Corp., Denver, agreed to acquire the assets of Venus Exploration Inc., San Antonio, for $3.225 million with closing expected by May 3.

Venus is under supervision of the US Bankruptcy Court in the Eastern District of Texas. PYR said the purchase provides for a net profits interest payable to the Venus Exploration Trust.

The net profits interest of the acquired assets varies from 25% to 50% with respect to different Venus exploration and exploitation project areas and decreases by half its original amount after $3.3 million in proceeds has been paid to the trust.

The acquisition includes net production of 980 Mcfed and 4.667 bcfe of proved reserves, 65% oil by volume. The deal includes seven leased gas exploration and exploitation proposed projects, three of which are pre-sold to industry partners and are to begin drilling shortly.

The three projects are the Tortuga Grande (Cotton Valley) prospect in Smith County, Tex., and the Nome and Madison prospects in Jefferson County, Tex. Nome and Madison are Expanded Yegua fairway prospects.