Heavy Earth Resources Inc. (OTCQB: HEVI), an oil and gas exploration and production company focused on Central and South America, has entered into a non-binding letter of intent (LOI), through its wholly owned subsidiary Deep Core Barbados, with New Horizon Exploration Inc., an oil and gas exploration and production company based in the US with principal operations in Colombia, for the purchase of 100% of the equity ownership of New Horizon.
Heavy Earth currently owns a 25% working interest in the 68,302-acre La Maye Block in the Lower Magdalena Basin in Colombia. New Horizon is currently the operator of the La Maye Block. As part of the proposed transaction contemplated under the LOI, the company will assume operatorship of the La Maye Block from New Horizon, while increasing its working interest in the La Maye Block to 38%.
With the purchase of New Horizon, the company will be able to focus on its La Maye Block asset while retaining a significant interest in the Morichito Block. The transaction is expected to close by January 31, 2014.