CALGARY, ALBERTA--(Marketwired - May 25, 2017) - Tanager Energy Inc. ("Tanager" or the "Corporation") (TSX VENTURE:TAN)(OTC PINK:MNIRF) announced today that its joint venture partner, Paleo Oil Company, LLC ("Paleo") has entered into a master gas purchase agreement with Houston Pipe Line Company LP ("HPL") regarding the Raptor A #1 well and Raptor B #1 well, in Polk County, Texas. Tanager owns a fifty percent (50%) working interest in the Raptor A #1 well and seventy five percent (75%) working interest(1) in the Raptor B #1 well. Pursuant to the agreement, Paleo will sell all of the gas produced from these wells to HPL. For purchases pursuant to the master agreement, the parties will enter into a separate purchase and sale agreement confirming, among other matters, the monthly delivered volumes and price. The term of the master agreement is for a period of one year and shall then continue on a month-to-month basis thereafter, until terminated by either party upon 30 days' written notice.
HPL is one of the largest owners and operators of pipelines in the US and owns thousands of miles of pipelines in Polk and Tyler County, Texas in the Paleo-Tanager JV area. As a result of this agreement, and having previously secured all necessary pipeline right of way agreements, construction of the Raptor gas pipeline will be expedited. Weather permitting, first gas sales from Tanager's Raptor discovery should occur within sixty to ninety days.
Tom M. Crain, Jr., interim Chairman and CEO of Tanager, commented, "We are pleased to have HPL as our gas purchaser. This Gas Purchase Agreement will enable Tanager to quickly generate substantial cash flow, to continue to expand our drilling and development program over the next several years and generate value for our shareholders."
Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Tanager Energy Inc. is an oil and natural gas and mineral exploration company headquartered in Calgary, Alberta, with executive offices in Houston, Texas. The Corporation's common shares are listed on the TSX Venture Exchange under the trading symbol "TAN" and are quoted on the OTC Markets under the symbol "MNIRF".
(1) Subject to a twenty-five percent (25%) back in after "payout" in favor of Paleo Oil Company LLC pursuant to the terms of the Exploration Agreement between Tanager Energy (USA), Inc. and Paleo Oil Company, LLC.
Tom M. Crain, Jr.
Interim Chairman of the Board and Chief Executive Officer