Zone Resources Negotiates a 5% Overriding Royalty Interest in Bakersfield

- April 26th, 2010

Zone Resources Inc. (Zone) (TSX VENTURE:ZNR) reported has negotiated to transfer its working interests in the Dyer Creek and SE Edison properties to Daybreak Oil and Gas Inc.

Zone Resources Inc. (Zone) (TSX VENTURE:ZNR) reported has negotiated to transfer its working interests in the Dyer Creek and SE Edison properties to Daybreak Oil and Gas Inc.

The press release is quoted as saying:

The 5% overriding royalty interest, based on the 50% working interest the Company held in the SE Edison property, equates to 2.50% of all revenue received from the property, being paid to the Company. The 5% overriding royalty interest, based on the 25% working interest the Company held in the Dyer Creek property, equates to 1.25% of all revenue received from the property, being paid to the Company. The overriding royalty interest payments are free of any operating or production costs, but net of any county or state production, severance or franchise taxes. As of the date of the assignment, the only tax payable by the Company is the California Franchise Tax levied against revenue received by Zone.

Click here to access the entire press release

Click here to access Zone Resources Corporate Site

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