Wedgemount Resources Corp (CSE:WDGY, OTCQB:WDGRF) said on Monday it had agreed to sell up to a 5% overriding royalty interest (ORRI) in its west central Texas oil and gas assets to an undisclosed third party for as much as $800,000.
The deal includes an initial sale of a 1% ORRI in Wedgemount’s 100% working interest for $160,000, according to a statement from the company.
The buyer has 120 days to acquire up to an additional 4% ORRI, priced at $160,000 for each 1% interest.
Wedgemount said it would use the proceeds to upgrade field facilities and optimize producing wells through workovers and chemical treatments.
“The ORRI transaction increases our liquidity and thus enables us to deploy more growth capital into our existing assets,” Wedgemount CEO Mark Vanry said in a statement.
Wedgemount Resources is a junior oil and gas company engaged in acquiring, developing and operating oil and gas projects in Texas.