Brek will tender 500 shares of Gasco Preferred Stock and 4,750,000 shares of Gasco Common Stock and the individuals will tender 1,500,000 shares of Gasco Common Stock in exchange for 25% of Gascos acreage, plus an option to earn a further 5% upon completion of a ten-well drilling program. Furthermore Brek has entered negotiations with the individual shareholders to acquire their respective acreage position in exchange for Brek Shares.
Prior to execution of the definitive agreement, the companies will identify the acreage to be conveyed to Brek and the individual shareholders. Gasco currently owns more then 115,000 gross acres in the Uinta Basin of Utah and has approximately 120,000 net acres in the Greater Green River Basin of Wyoming.
In pursuing this agreement, Brek will not pursue the agreements it had entered into previously with various Gasco shareholders to acquire 7,000,000 shares in Gasco in exchange for 19,250,000 Brek shares.
Gregory Pek, Brek Energys CEO and Director, states, Brek is acquiring approximately 50,000 net acres in two Rocky Mountain basin-centered natural gas accumulations. This agreement will give Brek a hand in its own destiny. The timing on the conversion of our equity position to land position just made sense. Additionally, the Board of Directors has identified a number of candidates to round out Breks North American management team. I am extremely excited about the opportunity to work with people of such caliber in the energy sector.