NEWS JUST OUT!
TORRANCE, CA--June 20, 2013—Sebastian River Holdings, Inc. (USOTC: SBRH) announces today it has entered into Joint Venture Discussions with select parties for both new well drilling and the reworks of existing wells on the Master lease located Venango County, Pennsylvania. Currently, the project is held by Sebastian River Holdings and Drake Gold Resources, Inc.. Both Companies have ownership of and equity in the project in line with each Company’s financial contribution to the Lease’s overall Operation.
Peter Matousek, Director of SBRH and CEO of Drake Gold Resources is pleased with the prospect of additional partners toward the overall benefit to shareholders and Company growth. “Now that we have proven that oil is present, we are beginning to attract interest from other parties operating in the Natural Resource sector given the overall attractive deal negotiated on the Master Lease and based on the success to date with Drake Gold’s own Meyers Lease in the same region.
He continues, “Thus far, Drake and Sebastian are the two owners of the Masters Lease and the rights therein, which entitle us placement of new wells on our 457 acres of oil-rich property, as well as reworks of the existing wells There is massive potential here for a solid near-term ROI. The addition of a strategic JV partner will give us the leverage necessary to take advantage of the opportunity to our maximum potential.”
As detailed in an earlier release, the Companies’ received highly attractive terms from it’s former owner at a price of only $44,500, as a result of his wishes to receive royalties on the project while allowing capable partners to do the work. As well, it is agreed that payment for the lease may be made from production proceeds as they are earned.
Matousek adds, “To give you an idea of the magnitude of benefit here, a nearby lease with similar potential and smaller acreage recently sold for over $900,000 for a 75% Working Interest. Our Agreement entitles the JV to 100% Working Interest subject to a 3-year overriding royalty to the former lease owner. The full Agreement can be viewed at http://q.b5z.net/i/u/10073722/f/Drake-FT-fina...9-2012.pdf
Matousek concludes, “We thank shareholders sincerely for their patience and continued support as we continue to aggressively reach our goals to maximize both ownership, revenues and profit streams to the benefit of all involved. I can confidently assess, that at current prices, and proven existence of oil on our Lease, that the Company is excited given the opportunity here.”
More news to come in terms of the Master Lease as well as other endeavors in which the Company is engaged.
