Your browser does not support script
Gordon Creek Energy

Show printable version of 'Thunderbird Energy Completes US$25 Million Energy ...' in a New Window

News Releases
 August 29, 2011
Thunderbird Energy Completes US$25 Million Energy Stream Agreement with Sandstorm Metals & Energy

 Calgary, Alberta August 29, 2011 - Thunderbird Energy Corp. (TSX-V: TBD) ("Thunderbird" or the "Company") today announced that the Company has closed the US$25 million hydrocarbon purchase agreement (the "Agreement") with Sandstorm Metals & Energy Ltd. ("Sandstorm") previously announced on July 13, 2011. Proceeds from the Agreement will provide a substantial portion of the financing required for a two-year development program at Thunderbird's Gordon Creek, Utah natural gas property that will include drilling 50 new wells and re-working 5 existing wells. The initial stage of the development program, consisting of 15 new wells and the re-working of 5 existing wells, is expected to commence in September. The remaining 35 wells are scheduled for drilling in 2012.

Under the Agreement, Sandstorm will have the right to purchase 35% of all natural gas produced from Thunderbird's Gordon Creek property at a price equal to the lesser of the prevailing market price and US$1.00 per Mcf of gas delivered plus 20% of the Gordon Creek field gate price received above $4.00/Mcf. Thunderbird received an upfront payment of US$15 million at the initial closing and will receive a further US$10 million in 2012. Sandstorm may participate in future wells drilled at Gordon Creek beyond the initial 50 well program by providing additional production payment advances to Thunderbird at an agreed amount per well.

In connection with Sandstorm financing, Thunderbird has agreed to pay a 2% finders fee to D&D Securities Inc. of Toronto Ontario -- 1% in cash and 1% by way of the issuance of 1,666,666 common shares of the Company at a deemed price of $0.15 per share.

The Company has also recently completed the previously announced $300,000 private placement to Barry Brumwell, the Company's s new Vice President of Operations. The securities issued in connection therewith will have hold periods expiring November 18, 2011. In addition, the Company issued an additional $2,158,000 of 15% Gas Linked Debentures, with 4,316,000 attached debenture warrants exercisable at a price of $0.30 per share until October 31, 2011, $0.40 per share until October 31, 2012 and $0.50 per share until October 31, 2013, thereby fully subscribing the $10 million issue. Canaccord Genuity was paid a finders fee of $105,000 and issued 700,000 finders warrants exercisable at a price of $0.20 per share until October 31, 2013. All securities issued in connection with the completion of the debenture issue have hold periods expiring December 16, 2011.

Thunderbird Energy is a Canadian-based oil and gas exploration and production Company with interests in the US Rockies and mid-continent regions.

Thunderbird's holdings include the Gordon Creek, Utah natural gas field, the Rush County and a light oil project in Weston County, Wyoming. Thunderbird has also recently announced the commencement of a budgeted $29 million carbon sequestration project at Gordon Creek, to be 80% funded by the US Department of Energy.

You can return to the Top of this page