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8-K - FORM 8-K - SUN RIVER ENERGY, INC | d78999e8vk.htm |
EX-10.1 - EX-10.1 - SUN RIVER ENERGY, INC | d78999exv10w1.htm |
Exhibit 99.1
Sun River Energy, Inc. Update on 242,343 Acres Owned Fee Simple in the Raton Basin of New Mexico
DALLAS, TX (PRNewswire-FirstCall) January 13, 2011 Sun River Energy, Inc. (OTC:BB:SNRV).
Sun River Energy, Inc. (the Company or Sun River) is pleased to provide an update to its land
ownership position in Colfax County, New Mexico.
Sun River recently completed a comprehensive review of title to its owned acreage in Colfax County,
New Mexico. As a result of this review and a corresponding settlement with the former owner, Sun
River now believes its acreage position in Colfax County is approximately 83,383 gross acres larger
than previously reported in its most recent 10-Q. Sun River now estimates it owns approximately
242,343 gross acres of various types in Colfax County.
In conjunction with the review, and in order to clear any perceived cloud on its title, Sun River
obtained a Release and Cancellation of Assignment of Overriding Royalty and the Agreement to
Grant Option and Right of First Refusal and a Second Correction Quit Claim Deed
covering the acreage. In order to secure this release and corrected quit claim deed, Sun River
also entered into a Settlement Agreement and Release and Covenant Not to Sue with the
former owner of Sun Rivers Colfax County property. Sun River issued 200,000 shares of its
restricted common stock to the former owner as additional consideration relating to the
transaction.
The 242,343 gross acres covers several different types of sub-surface and surface ownership rights
depending upon location. Some of the ownership rights may overlap. Presently, the ownership
rights are broken out as follows:
1. | 172,000 gross acres of mineral interest relating to oil and gas (hydrocarbons), including sulfur; | ||
2. | 157,000 gross acres of non-hydrocarbon mineral interest and precious metals including, but not limited to gold and silver; | ||
3. | 160,000 gross acres for mining of coal; and | ||
4. | 34,000 gross acres of timber. ** |
(**These are approximate acreage amounts based upon review of the reservations from original
land grant language, in most cases, no actual survey has been completed to establish the precise
amount of acres.)
Sun River also has miscellaneous rights to ditches, telegraphs, and railroad right-of-ways in the
area. The Company is still evaluating the extent of these rights.
In general, the acreage is favorably situated relative to the Raton Basin, a geological area known
to contain commercial amounts of hydrocarbons and coal. Further, a portion of the acreage covers
the Elizabethtown-Baldy Mining District, which produced prolific amounts of gold, silver, and
base-metals up through the 1940s. There are currently no active mines.
According to Donal R. Schmidt, Jr., the Companys CEO and President:
The release of ORRI and corrected quit claim clarifies the prior owners intent with respect
to his transfer of assets to Sun River. The documents quiet any perceived cloud on our
title. In addition, our review of the nature of our specific ownership interest on a
deed-by-deed basis led us to believe the amount of acreage previously disclosed was
misstated on the low side.
We discovered the additional acreage by applying our best practices method of reviewing
title. Our operations team has been demonstrating their skills with us for years.
Upon becoming CEO, I requested our geologists provide me with an overview of their work
related to our New Mexico assets. During their presentation, I noticed that a particular
tract of land on a base map was labeled with a term with which I was unfamiliar. I
questioned the geologists and the senior landman as to what they were attempting to describe
with respect to Sun Rivers ownership interest. This conversation led me to direct our
staff to review Sun Rivers entire bundle of ownership rights in Colfax County. I asked
them to focus on the state of title and the nature of reservations which were ultimately
conveyed to the Company. To assist our staff in this large and complex task, Sun River
engaged independent counsel familiar with New Mexico oil and gas and real estate law.
At the end of the day, I am personally shocked at the results of this review. I am pleased
beyond what words can convey that our overall position in New Mexico increased by more than
50 percent.
About Sun River Energy, Inc.:
Sun River Energy, Inc. is a development stage Dallas-based oil and gas exploration and production
company. For further information on the Company, please visit our website www.SNRV.com.
Media Contact:
Gilbert Steedley
1-800-669-6511
Gilbert Steedley
1-800-669-6511
Notice Regarding Forward-Looking Statements
This news release contains forward-looking statements (statements which are not historical facts)
made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements are based on current expectations rather than historical facts
and they are indicated by words or phrases such as anticipate, could, may, might,
potential, predict, should, estimate, expect, project, believe, plan, envision,
continue, intend, target, contemplate, or will and similar words or phrases or comparable
terminology. We have based such forward-looking statements on our current expectations,
assumptions, estimates and projections. While we believe these expectations, assumptions, estimates
and projections are reasonable, such forward-looking statements are only predictions and involve
known and unknown risks and uncertainties, and other factors that may cause actual results,
performance or achievements to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements, many of which are beyond our
control. These factors include, but are not limited to, the time to consummate the proposed
transaction; the risk that one or more conditions to closing the proposed transaction may not be
satisfied ; the timing and extent of changes in market conditions and prices for natural gas and
oil; the timing and extent of the Companys success in discovering, developing, producing and
estimating reserves; the economic viability of, and the Companys success in drilling, the
Companys ability to fund the acquisition of oil and gas assets and the Companys planned capital
investments; the Companys future property acquisition or divestiture activities; increased
competition; and any other factors listed in the reports the Company has filed and may file with
the Securities and Exchange Commission. Investors are cautioned not to place undue reliance on
these forward-looking statements, which reflect the Companys expectations only as of the date they
were made. The Company undertakes no obligation to update or revise any forward-looking statements
to reflect new information or the occurrence of unanticipated events or otherwise.