X hits on this document

PDF document

Edgar Filing: TIDELANDS OIL & GAS CORP/WA - Form 10-K - page 80 / 83

399 views

0 shares

0 downloads

0 comments

80 / 83

Edgar Filing: TIDELANDS OIL & GAS CORP/WA - Form 10-K

aforementioned

claims would be upheld at trial and has also determined

that the amount of the claims cannot be reasonably Accordingly, the Company's financial statements reflect no loss contingency with response to the above legal matters.

estimated. accrual of a

NOTE 15 - ACQUISITIONS

-------

-------------

REEF VENTURES, L.P. TRANSACTION -------------------------------

On May 25, 2004, the Company entered into a Purchase and Sale Agreement

for Reef Ventures, L.P. by and ("Impact") and Coahuila Pipeline,

between Impact LLC. ("Coahuila"),

International, LLC (jointly "Seller")

and

Tidelands

Oil

&

Gas

Corporation

("Tidelands")

and

Arrecefe

Management, LLC ("Arrecefe"), on June 18, 2004.

(jointly "Buyer"). The transaction closed

  • -

    29-

TIDELANDS OIL & GAS CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2005, 2004 (RESTATED) AND 2003

NOTE 15 - ACQUISITIONS (CONTINUED)

-------

------------------------

Purchase and S

ale Agreement - Background

in Texas on

April

16, 2003.

Coahuila

Ventures,

L.P.

Impact was

a limited

Reef

Ventures

,

L.P. was formed

owned one partner of Ventures,

per Ree L.P

. Tidelands formed Arrecefe

Management,

L.L.C., a Texas

percent (72%) of Reef

seventy-two

cent

(1%)

of

Reef

f

Ventures and owned

limited

liabi

lity company,

Ventures,

L.P.

Tidelands had

Reef

Ventures,

L.P.

to act already

as the general partner owned twenty-five percent

for Reef (25%) of

Summary of Pur

chase and Sale Agreement

The Company an interest in Re of the Reef in Note") in the

d

Arrecefe

purchased

Impact's

and

Coahuila's

units of

ef Ventures, L terests by tak amount of $6,5

.P., respectively. Impact fina

ing back a promissory

note

(t

23,773

payable

as

follows:

nced the sale he "Tidelands

applicable. T

he

the fourth yea

r.

(a) The "Tidel

ands Note" bea

The note calls

for quarterly

(15) months,

and thereaft

quarterly amor

tized over twe

equal to One

Hundred (100%

quarterly int

erest payment

Reef's net cas

h flow have be

unpaid

bal

rs interest at prime plus two interest payments during the er, principal and interest nty (20) years, but not to exc

) s

percent

due

which

of Reef's

net cas

are

limited

by

t

en and will be added to the no ance of the note would be due

(2%) percent. first fifteen would be due eed an amount h flow. All he amounts of te balance if at the end of

(b) The Tidela Trust") from related facil which compris transporting Mexico, define include a pres

nds' note is s the Partnersh ities, easeme e the project, natural gas f d in the Partn ent assignment

ecured by (i) a deed of trust (the "Deed of

ip nts,

to Impact,

covering

rights-of-way

and

the

the

pipeline and

Gas

Contracts

being that 12-inch

pipeline

Project for

rom

Eagle

Pass

Texas

to

Piedras

Negras,

ership

Agreement.

The

Deed

of

Trust

would

of Reef's rights to receive cash flow from

80

Document info
Document views399
Page views399
Page last viewedFri Jan 20 16:09:36 UTC 2017
Pages83
Paragraphs15149
Words37471

Comments