Thunderbird Energy Announces US$25 Million Energy Stream Agreement With Sandstorm Metals & Energy
Published : July 13, 2011
( 0 vote, 0/5 ) Print article
  Article Comments Comment this article Rating Follow Company  
0
Send
0
comment
Keywords :   Market | Natural Gas | Oil | Utah |

CALGARY, ALBERTA--(Marketwire - July 13, 2011) - Thunderbird Energy Corp. (News - Market indicators) ("Thunderbird" or the "Company") today announced that the Company has entered into a US$25 million hydrocarbon purchase agreement (the "Agreement") with Sandstorm Metals & Energy Ltd. ("Sandstorm"). 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.

"We are very pleased to announce this innovative financing arrangement with Sandstorm that will have a transformative effect on our company," stated Rick Ironside, President of Thunderbird. "We have reviewed a number of financing proposals over the last couple of years and feel that the Sandstorm structure offers us the best opportunity to aggressively develop our Gordon Creek field in a manner that allows us the greatest flexibility, while also maximizing the benefit to our shareholders and debenture holders."

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. As consideration, Thunderbird will receive an upfront payment of US$15 million in 2011 and a further US$10 million in 2012. The Agreement stipulates that Thunderbird will drill 20 new Gordon Creek wells and conduct 5 workover operations in 2011, and will drill 30 new wells 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.

The Company has provided Sandstorm with minimum before tax cash flow guarantees totaling US$25 million over the period 2012 through 2018, provided that the cash flow guarantees will not be applicable to specific calendar years in which the Gordon Creek field achieves specified minimum production levels. The Agreement also provides Thunderbird with a two-year right to buy back 50% of the future production committed under the Agreement, for a purchase price of US$16.25 million.

Closing of the transaction is subject to regulatory approvals and the completion by Sandstorm of its concurrently announced equity financing. The transaction also requires the approval of two-thirds of the holders of Thunderbird's Gas Linked Debentures.

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, Kansas light oil project and a light oil exploration project in Weston County, Wyoming.

Caution Regarding Forward- looking information

Information in this news release respecting expected cash flows, production levels and prices, as well as the expected closing, timing and impact of the proposed financing transaction constitutes forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company's plans, expectations, or beliefs as to future events or results are believed to be reasonable based on the information currently available to the Company. The Company does not undertake to update any such forward-looking statements unless required by applicable securities legislation.

Statements including forward-looking information involve known and unknown risks, uncertainties and other factors which may cause the actual results of the Company and its operations to be materially different from estimated costs or results expressed or implied by such forward-looking statements.

There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Thunderbird Energy Corp.
Cam White
Chief Executive Officer
604-707-0373
cwhite@thunderbirdenergy.com
or
Thunderbird Energy Corp.
Rick J. Ironside, P. Eng MBA
President and COO
403-453-1608
rironside@thunderbirdenergy.com
www.thunderbirdenergy.com

Thunderbird Energy Corp.

CODE : TBD.V
ISIN : CA3827351089
Follow and Invest
Add to watch list Add to your portfolio Add or edit a note
Add Alert Add to Watchlists Add to Portfolio Add Note
ProfileMarket
Indicators
VALUE :
Projects & res.
Press
releases
Annual
report
RISK :
Asset profile
Contact Cpy

Thunderbird Energy is a gold exploration company based in Canada.

Thunderbird Energy holds various exploration projects in USA.

Its main exploration property is WORLDBEATER in USA.

Thunderbird Energy is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 16.0 millions as of today (US$ 15.4 millions, € 11.2 millions).

Its stock quote reached its highest recent level on December 09, 2002 at CA$ 1.00, and its lowest recent point on October 23, 2013 at CA$ 0.01.

Thunderbird Energy has 106 646 000 shares outstanding.

Your feedback is appreciated, please leave a comment or rate this article.
Rate : Average note :0 (0 vote) View Top rated
 
Nominations of Thunderbird Energy Corp.
6/22/2011Appoints Barry Brumwell as Vice President of Operations
5/16/2011Alan J. Walker Appointed to Thunderbird Energy Board of Dire...
Corporate news of Thunderbird Energy Corp.
6/1/2013Reports Year Ended January 31, 2013 Filings
5/16/2013Corporate Update
5/16/2013Corporate Update
3/28/2013Issues Shares to Sandstorm
10/9/2012Gordon Creek Completion Program Update
7/13/2011Announces US$25 Million Energy Stream Agreement With Sandsto...
5/24/2011Announces Niobrara Oil Test Well
4/26/201115% Gas Linked Debenture Listing and New Issue
Comments closed
 
Latest comment posted for this article
Be the first to comment
Add your comment
TSX-V (TBD.V)FRANKFURT (M2Y.F)
0.150+1400.00%0.039+8.33%
TSX-V
CA$ 0.150
10/22 13:49 0.140
1400%
Prev close Open
0.010 0.010
Low High
0.010 0.010
Year l/h YTD var.
 -  -
52 week l/h 52 week var.
- -  0.150 1,400.00%
Volume 1 month var.
5,000 1,400.00%
24hGold TrendPower© : -44
Produces
Develops
Explores for
 
 
 
Analyse
Interactive chart Add to compare
Interactive
chart
Print Compare Export
You must be logged in to use the porfolio and watchlists (free)
Top Newsreleases
MOST READ
Annual variation
DateVariationHighLow
 
5 years chart
 
3 months chart
 
3 months volume chart
 
 
Mining Company News
Plymouth Minerals LTDPLH.AX
Plymouth Minerals Intersects Further High Grade Potash in Drilling at Banio Potash Project - Plannin
AU$ 0.12-8.00%Trend Power :
Santos(Ngas-Oil)STO.AX
announces expected non-cash impairment
AU$ 7.05+0.43%Trend Power :
OceanaGold(Au)OGC.AX
RELEASES NEW TECHNICAL REPORT FOR THE HAILE GOLD MINE
AU$ 2.20+0.00%Trend Power :
Western Areas NL(Au-Ni-Pl)WSA.AX
Advance Notice - Full Year Results Conference Call
AU$ 3.86+0.00%Trend Power :
Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
CA$ 0.12+4.55%Trend Power :
Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
CA$ 0.02+100.00%Trend Power :
McEwen Mining(Cu-Le-Zn)MUX
TO ACQUIRE BLACK FOX FROM PRIMERO=C2=A0
US$ 8.91-2.73%Trend Power :
Rentech(Coal-Ngas)RTK
Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
KEFIKEFI.L
Reduced Funding Requirement
GBX 0.59-3.26%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.05+10.00%Trend Power :
Imperial(Ag-Au-Cu)III.TO
Closes Bridge Loan Financing
CA$ 2.06+0.00%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
CA$ 1.84+0.00%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
 12.67+0.88%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.34+6.25%Trend Power :
Havilah(Cu-Le-Zn)HAV.AX
Q A April 2017 Quarterly Report
AU$ 0.18+0.00%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
 1.77-2.21%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 40.37-0.22%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
Terramin(Ag-Au-Cu)TZN.AX
2nd Quarter Report
AU$ 0.04+0.00%Trend Power :
Take advantage of rising gold stocks
  • Subscribe to our weekly mining market briefing.
  • Receive our research reports on junior mining companies
    with the strongest potential
  • Free service, your email is safe
  • Limited offer, register now !
Go to website.