American Noble Gas Acquires Interests in Oil and Gas Leases in Southern Kansas Near the Oklahoma Border - Seite 2

With respect to its cash capital contribution, the Company paid a non-refundable cash deposit for the Interests in the amount of $50,000 on May 3, 2022 and paid the remainder of the cash contribution for the Interests, or $800,000, on May 16, 2022. The remainder of the Company’s capital contribution, or $3,187,500, was financed by the bank loan.

The Company funded the cash contribution through the issuance of 8% Senior Unsecured Convertible Promissory Notes due June 29, 2022 to two institutional investors. The Company issued a total of 425,000 shares of common stock to these two institutional investors as additional consideration for such notes.

Management commentary:

Stanton E. Ross, Chairman and Chief Executive Officer of AMGAS stated that “We are very pleased to be on a team with Darrah Oil Company, LLC and Grand Mesa Operating Company who are well-known industry leaders, especially in Kansas and Oklahoma where these oil and gas leases are located. The underlying leases are currently producing positive cash flows and also contain substantial future development opportunities. I think it is very telling that a commercial bank was willing to provide long-term debt financing for a substantial portion of the overall capital contribution of GMDOC. We are very happy with our ownership position in such a prolific package of oil and gas leases and will continue to look for similar opportunities," added Mr. Ross. Concluded Mr. Ross: “In addition to our commitment to the region and our long term objective to develop noble gases, this partnership will produce immediate revenue and results to our stockholders.”

Will Darrah third-generation oil and gas producer and manager of Darrah Oil stated that “At Darrah Oil, we pride ourselves on advancing energy and we believe natural gas is a crucial fuel of the future. We are impressed with American Noble Gas’s team and are excited to be working with them on this project that we believe provides good existing cash flow with internal upside potential.”

About American Noble Gas, Inc.:

In April 2022, AMGAS acquired participation rights in a certain farmout agreement (the “Farmout Agreement”) to explore and develop natural gas, helium and brine minerals inside the Hugoton Gas Field in Haskell and Finney Counties, Kansas. AMGAS has a 40% interest in the Farmout Agreement which covers drilling and completion of up to 50 wells. The initial exploratory well was spud in May 2022 and is currently scheduled to be completed in June 2022. The initial exploratory well revealed encouraging results for natural gas and helium reserves.