Pursuant to its oil&gas Lease, Pure Cycle says that production has begun on one of its two oil&gas sites at Sky Ranch. 'We are pleased to announce that production has begun at the first oil and gas well on our Sky Ranch property', stated Mark Harding, Pure Cycle's President and CEO. 'In addition to the land and water ownership, the acquisition of the 930 acre Sky Ranch property also included approximately 640 acres of mineral interests.
The Company will receive 20% gross (net of taxes) royalty revenue based on 3/8ths of the total production of this 1,280 acre pooled, 10,000 foot horizontal well. The second 1,280 acre pooled, 10,000 foot horizontal well, which the Company will receive 20% gross (net of taxes) royalty revenue based on 1/8th of the total production is in the final stages of completion and should begin producing shortly', continued Mr. Harding.