Big Cat Energy Corporation and High Plains Gas Inc. Announce Signing of Sales Purchase Agreement for Strategic Investmentadmin
Big Cat Energy Corporation and High Plains Gas Inc. announce the execution of a definitive Sales Purchase Agreement (“Agreement”) for a strategic investment by High Plains into Big Cat Energy valued at $600,000.
“This strategic investment solidifies our support for Big Cat and their innovative and environmentally friendly water handling technology for coal bed methane production,” said Mark Hettinger, Chairman of High Plains. “On-going water handling costs and environmental exposure are both vitally important issues facing the coal bed methane sector today. We look forward to working closely with Big Cat to review our entire coal bed methane portfolio to determine where the ARID technology will provide us with the earliest and greatest economic advantage.”
The ARID® Aquifer Recharge Injection System and Service is an ingenious and cost-effective solution for coal bed methane (CBM) produced water handling with many advantages for well operators and land owners including;
* dramatically reduced time required for new CBM well permitting * available for use in areas requiring the strictest environmental controls * significantly shortened time for overall CBM well completion and production * total elimination of CBM produced water storage costs * total elimination or dramatic reduction of ongoing CBM water treatment costs * zero down-time due to cold weather water freezing * lower well maintenance costs * recharges existing water aquifers with water of the same or better quality for future use
* eliminates post production land reclamation costs
“High Plains’ belief and financial investment in Big Cat and its ARID technology validates the results we proved in the field during successful pilot projects,” commented Tim Barritt, CEO and President of Big Cat. “We are excited to seize this opportunity to provide High Plains with the ARID technology solution for coal bed methane water handling and help them achieve maximum value for their significant investment.”
The Agreement provides for High Plains to acquire 20,000,000 restricted shares of Big Cat common stock with share purchase warrants to acquire an additional 10,000,000 restricted shares, exercisable for $0.15 per share. The purchase price of $600,000 consists of a combination of $200,000 cash and 369,590 restricted shares of High Plains valued at $400,000. Exercise of the warrants to receive common shares would result in a potential additional $1,500,000 investment by High Plains. On closing of this transaction, Big Cat will also nominate Mark Hettinger, President of High Plains, to the Company’s Board of Directors. Additionally, the Agreement requires Big Cat to register the shares and the shares underlying the warrants with the SEC.