There were a number of companies that had come into focus among investors on Tuesday, and one of those was PetroSun Inc. The company hit the news cycle yesterday after it announced the signing of a fresh farmout agreement with Pivot Point Energy Inc. (OTC:PSUD). The agreement in question covered as much as 207,663 acres spread across the Holbrooke Basin of Navajo and Cocoino counties. There had been a previous agreement covering the acreage with Jayd Ventures Inc. dated May 18, 2023. That agreement went into default and was eventually terminated on April 30 of this year. As per the provisions of the Farmout Agreement with Pivot Point, PetroSun would get a $2,500,000 leasehold fee that would be payable no later than June 12, 2024.
Additionally, the company would also be entitled to a drilling commitment of two test wells on the basis of seismicity, in addition to a 25% carried interest in the same wells. Pivot Point would be provided with a 75% working interest participation that would cover the 207663 acres, an extension of three years on the base lease, which would be paid by PetroSun from a leasehold fee, and an AMI (area of mutual interest) that would extend three miles from any of the lease lines. In the news release, it was also announced that the primary resource target from the South and North Winslow farmout would be helium from a number of formations down to the basement.
It was also revealed that the secondary resource target from the Permian Fort Apache would be oil, and natural gas would be sourced from the Devonian. After the leasehold fee is paid, the seismic lines will be shot so as to develop the initial test well locations related to the exploration program. It may be a good time to add PetroSun to your watch lists.
 Stock Rallies 11%: What Next?){kind=link}