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Viking Gains Proved Reserves in $3.2M Onshore Deal

Viking Energy Group Inc. said its proven oil and natural gas reserves increased after it acquired Petrodome Energy LLC from Black Rhino LP, a privately held operator, in a cash-and-stock deal valued at $3.2 million.

New York City-based Viking said Tuesday its proven oil reserves had increased by about 1.5 million bbl following its acquisition of Houston-based Petrodome, while proven gas reserves had increased by about 993.4 MMcf. The acquired assets include a working interest in multiple oil and gas fields in Louisiana, Mississippi and Texas.

Viking said the acquired assets include leases covering 11,629 gross (9,360 net) acres, with current net output of 350 boe/d, 75% weighted to oil.

According to a Form 8-K filed with the Securities and Exchange Commission, the deal, which was completed on Dec 22, included a $3.2 million cash payment and two million shares of common stock. The transaction also granted Black Rhino a 1.5% overriding royalty interest in all existing oil and gas leases associated with the acquisition. The royalty interest extends to all new oil and gas wells drilled on prospects identified by Black Rhino in the acquisition agreement, which expires on Oct. 31, 2020.

Although the 8-K did not identify the location of the acquired assets, Black Rhino is named as the owner of all of the issued and outstanding membership interests in 23 limited liability companies under the Petrodome name, with 15 in Texas, seven in Louisiana and one in Mississippi. Two Petrodome subsidiaries, Petrodome Hamilton Ranch LLC and Petrodome San Patricio LLC, were added in a second amendment to the deal.

Viking, an independent exploration and production company focused on acquiring and developing North American oil and gas assets, has leases in Alberta, Kansas, Louisiana Mississippi, Missouri and Texas.

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