Lancaster Resources announced today that it has entered into a spin-off agreement with a subsidiary company, Lancaster Resources Subsidiary. Lancaster Resources is a Dallas based energy company primarily focused on oil and natural gas exploration operations in North Texas and South Louisiana.
The Spin-off Agreement allows for Lancaster Resources Subsidiary to become an independent company, with Lancaster Resources retaining majority ownership of the subsidiary. The shareholders of Lancaster Resources will have the option to convert their current shares into shares of the new entity.
The Record Date, or the date on which the spin-off will be effective, is set at the close of the business day on November 30, 2020. Lancaster Resources Subsidiary will receive all existing assets and liabilities related to its operations at the time of the spin-off.
Lancaster Resources will continue to supply essential services to the newly-formed company and provide financial resources to help it become established. This agreement is part of the company’s broader strategic plan to maximize shareholder value through operational efficiency and the development of new resources.
Lancaster Resources Subsidiary specializes in the development of energy production facilities in the Permian Basin and Appalachia, two areas that are growing significantly in the oil and gas industry. The spin-off will create an independent firm that can fully capitalize on these growth opportunities and provide increased stability and modernization of its operations.
This spinoff agreement is a positive move for Lancaster Resources shareholders and will result in increased share value and long term growth opportunities. The company’s resources and operational expertise are expected to be key drivers in the subsidiary’s success, and Lancaster Resources hopes to continue to leverage its resources to create value for its shareholders.