Rango Energy Inc. (OTC: RAGO) announced Dec. 2 that it has signed a definitive letter of intent to acquire Innex Energy Inc., a Dallas-based energy company with oil and gas leases covering 50,000 acres in the San Joaquin Valley, Northern California's Sacramento Basin and Oklahoma.
The terms of the deal were not provided and are subject to a non-disclosure agreement until such time as a definitive agreement is signed. The transaction is subject to mutual due diligence and completion of a financing that will close concurrently with the acquisition.
Rango expects to be able to provide interim updates as the transaction calls for three separate closings in order to accommodate and not interfere with existing contracts that Innex currently has in place with their drilling partners.
"We are elated to have the opportunity to bring Innex's tremendous oil and gas portfolio into the Rango Energy. Innex has spent the better part of 14 years putting a diverse, oil and gas rich group of leases together that have both current production and proven undeveloped reserves. We now have the task of completing mutual diligence as well as funding the acquisition," Harp Sangha, Rango CEO, said in the release.
"Further, upon the closing of this transaction, we will be inheriting Innex's team of successful and seasoned engineering and geological experts. These gentleman have worked in senior positions at major oil companies and bring a wealth of expertise and experience to our company. We will be providing more information about their background as well as the assets in their portfolio in the near future," Sangha said.
Rango Energy Inc. engages in the acquisition, exploration, and development of oil and natural gas properties in North America. The company is based in Vivian, La.