North American Oil & Gas Corp. (OTCBB: NAMG) reports that the company has entered into a $5 million investment agreement with Beaufort Ventures PLC.
The investment allows, but does not obligate, NAMG to issue and sell up to $5 million of the company's common stock over a 36-month term following the effectiveness of a registration statement that the company has agreed to file with the Securities and Exchange Commission. NAMG has filed an 8-K with the Securities and Exchange Commission further detailing the transaction, which is not an equity line of credit.
"This equity investment provides NAMG with the capital to execute on its business plan of drilling wells, acquiring new acreage and pursuing new play concepts aggressively," said Robert Rosenthal, president and CEO of NAMG. "Beaufort's support and investment allows maximum flexibility for NAMG to allocate its capital effectively and pursue its business objectives."
As of March 28, NAMG owned interests in approximately 8,243 gross acres (5,159 net acres) in the southern San Joaquin Basin – White Wolf, 4,823 gross (2,266 net) acres; Tejon Main, 2,874 gross (2,586 net) acres; and Tejon Extension, 546 gross (307 net) acres.