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AMREP Enters Into Oil And Gas Lease

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AMREP Corporation (NYSE: AXR) today reported that its indirect subsidiaries, AMREP Southwest Inc. and Outer Rim Investments, Inc. (collectively, "AMREP Southwest"), have entered into an Oil and Gas Lease with Thrust Energy, Inc. and Cebolla Roja, LLC (collectively, the "Lessee"), in which AMREP Southwest leased to Lessee all minerals and mineral rights in and under approximately 55,000 surface acres of land in Sandoval County, New Mexico for the purpose of exploring for, developing, producing and marketing oil and gas.

In consideration for entering into the lease, AMREP Southwest received approximately $1,000,000 as a lease bonus payment and, if any oil and gas is produced from the leased premises, AMREP Southwest will receive 1/7th of the gross proceeds from the sale of such oil and gas less any expenses to place the oil and gas in marketable condition after it is brought to the surface.

Additional details on the lease are provided in AMREP's Current Report on Form 8-K filed with the Securities and Exchange Commission on September 9, 2014.

 

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