MK California, LLC agreed to acquire 75% stake in oil and gas lease in approximately 2,821 net acres within a prospect area located in Kern County from Underground Energy Corporation for $1.02 million.

MK California, LLC entered into a letter of intent to acquire 75% stake in oil and gas lease in approximately 2,821 net acres within a prospect area located in Kern County from Underground Energy Corporation (TSXV:UGE) for $1.02 million on July 2, 2012. MK California, LLC entered into an agreement to acquire 75% stake in oil and gas lease in approximately 2,821 net acres within a prospect area located in Kern County from Underground Energy Corporation on July 11, 2012. On March 4, 2013, Underground Energy Corporation filed a voluntary petition under Bankruptcy Code.

On March 14, 2013, Underground Energy Corporation and MK agreed that MK California, LLC would pay a non refundable $0.15 million deposit within ten business days of this court confirming the assumption of the July 11, 2012 purchase and sale agreement between MK California, LLC and Underground Energy Corporation and that further $0.15 million non refundable deposits shall be paid on each of 30, 60 and 90 days after the deposit date, with the remaining balance of the purchase price to be paid 120 days.