PetroSun, Incorporated (PSUD.PK) reports that it has completed the initial funding requirements of the Exploration Permit 442 Farmin Agreement with New Standard Exploration NL of West Perth, Western Australia.
The financial terms included a cash payment of one hundred thousand dollars US to New Standard NL. PetroSun will be assigned a 70% working interest in the Canning Basin permit as the sole funder of the drilling, testing and completion costs of the initial three test wells.
PetroSun will be responsible for seventy percent and New Standard NL thirty percent of the costs on all subsequent wells drilled on the farmin leasehold.
PetroSun has been designated as the Manager/Operator of Exploration Permit 442. The net revenue interest to the working interest owners approximates ninety percent, with the government retaining the balance as a royalty interest. The Company will be posting technical information and maps related to the EP 442 on its website at www.petrosuninc.com.
PetroSun’s current oil and gas operations are concentrated in the Ark-La-Tex region with plans to expand into New Mexico, Arizona and Australia in 2007. Algae BioFuels, a wholly owned subsidiary of PetroSun, is an emerging producer of biodiesel derived from the cultivation of algae. PetroSun is headquartered in Phoenix, Arizona with field offices in Shreveport, Louisiana and Opelika, Alabama.
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