It’s been a red-letter day for Kansas-based Infinity Energy Resources, Inc. (Pink Sheets:IFNY) The independent oil and gas exploration and development company announced Thursday that it has acquired an option to buy the production and mineral rights/leasehold for oil & gas properties in the Central Kansas Uplift geological formation covering over 11,000 contiguous acres from Core Energy.
The purchase option IFNY the right to acquire the Properties for $2.5 million prior to the end of the year, provided it pays a non-refundable deposit by the end of August.
Infinity is purchasing the existing production equipment, infrastructure and ownership of 11 square miles of existing 3-D seismic data on the acreage, including a horizontal producing well, horizontal saltwater injection well, a conventional saltwater disposal well and two conventional vertical producing wells, which currently produce from the Reagan Sand zone with an approximate depth of 3,600 feet.
Infinity intends to complete the acquisition prior to the end of calendar year 2019, provided the financing is there.
While the volume was not world-beating (only 46,000 shares), the price of those shares went through the roof, jumping 9.3 cents, or 166.7%, to 15 cents.