Fortune Petroleum Joins Exploration Project
Fortune Petroleum Corp., an Agoura Hills petroleum exploration and production company, said it has entered an agreement to acquire a 50% interest in an exploration project off the Louisiana coast with Zydeco Exploration Inc., a Houston-based oil company.
Zydeco specializes in using advanced three-dimensional seismic imaging technology to search for hidden pockets of oil. Tyrone Fairbanks, chief executive of Fortune, said: “This is an important move for us because we have primarily been an acquisition and development company, not an exploration company. We’re moving from the back of the bus to the front in 3-D seismic technology.”
To enter the deal with Zydeco, Fortune said it has agreed to acquire Lagniappe Exploration Co., a Delaware-based petroleum company that now holds a 50% interest in the Louisiana exploration project with Zydeco.
According to the acquisition agreement, Fortune will place about 1.2 million shares of its common stock plus 1.2 million common stock warrants into an escrow account. Those shares and warrants will be released to owners of Lagniappe--a privately held company--only if certain asset and financial performance criteria are met.
Fortune has also pledged to contribute $4.8 million to the exploration project before Oct. 15. The project centers on 13 oil well prospects off the Louisiana shore, Fortune said.
