AXP Energy signed an agreement with Mountain V Oil & Gas to sell 100% of its oil and gas assets in Illinois and the Appalachian Basin for $4 million.
The total consideration includes a prepayment of $500,000 upon the execution of the binding letter agreement, another prepayment of $500,000 upon the execution of the full-form purchase and sale agreement, occurring no later than Dec. 31, and $1 million upon obtaining the approval of the transaction from AXP shareholders.
The remaining $2 million will be paid at closing, subject to adjustments. The deal enables a compelling sale price for the disposal projects purchased for $2.425 million in 2021.
Funds will be used to finance AXP's flagship project in Colorado and other acquisitions in the oil and gas sector.