Admiral Bay Resources Inc. has reached agreement to acquire approximately 39,000 net acres, 28 producing and SI wellbores and a SWD well in the Ft. Scott Project that immediately offsets its Devon Project.

The Company also acquired the 50% interest in the Bourbon County Pipeline (“BCPL”) it does not currently own. The acquisition more than doubles Admiral Bay’s net acreage position in the Devon Project area and gives it complete control of the gathering system.

This new acreage adds approximately 50 bcf of 3P reserves potential to the Devon Project area. The Ft. Scott Project currently produces 50-80 mcfpd into the BCPL system. The Company is reviewing alternatives for increased activity in this area to grow production and reserves.

The Company will issue 3 million shares of its common stock to the owners of the Ft. Scott Project and BCPL. In addition, the sellers will have a 25% back in interest after 120% payout on a project basis on the Ft. Scott Project acreage.

One of the sellers, Running Foxes Petroleum (RFP), owns a minority interest (less than 10% percent in aggregate) in both BCPL the Ft. Scott Project, and is controlled by Steven A. Tedesco, President, CEO and a director of Admiral Bay. The other seller is an unaffiliated private company. RFP and the private company acquired their interest in the Ft. Scott Project and BCPL prior to Mr. Tedesco joining Admiral Bay.

Closing of the transaction is contingent upon approval from the TSX Venture Exchange for the issuance of the stock.

Tags: Admiral Bay Resources Inc., Ft. Scott Project