Thunderbird Energy Corp. has closed the $25-million (U.S.) hydrocarbon purchase agreement with Sandstorm Metals & Energy Ltd. previously announced on July 13, 2011. Proceeds from the agreement will provide a substantial portion of the financing required for a two-year development program at Thunderbird's Gordon Creek, Utah, natural gas property that will include drilling 50 new wells and reworking five existing wells. The initial stage of the development program, consisting of 15 new wells and the reworking of five existing wells, is expected to commence in September. The remaining 35 wells are scheduled for drilling in 2012.

Under the agreement, Sandstorm will have the right to purchase 35 per cent of all natural gas produced from Thunderbird's Gordon Creek property at a price equal to the lesser of the prevailing market price and $1.00 (U.S.) per thousand cubic feet of gas delivered plus 20 per cent of the Gordon Creek field gate price received above $4.00 per thousand cubic feet. Thunderbird received an upfront payment of $15-million (U.S.) at the initial closing and will receive a further $10-million (U.S.) in 2012. Sandstorm may participate in future wells drilled at Gordon Creek beyond the initial 50-well program by providing additional production payment advances to Thunderbird at an agreed amount per well.

In connection with Sandstorm financing, Thunderbird has agreed to pay a 2-per-cent finder's fee to D&D Securities Inc. of Toronto, Ont. -- 1 per cent in cash and 1 per cent by way of the issuance of 1,666,666 common shares of the company at a deemed price of 15 cents per share.

The company has also recently completed the previously announced $300,000 private placement to Barry Brumwell, the company's new vice-president of operations. The securities issued in connection therewith will have hold periods expiring Nov. 18, 2011. In addition, the company issued an additional $2,158,000 of 15 per cent gas-linked debentures, with 4,316,000 attached debenture warrants exercisable at a price of 30 cents per share until Oct. 31, 2011, 40 cents per share until Oct. 31, 2012, and 50 cents per share until Oct. 31, 2013, thereby fully subscribing the $10-million issue. Canaccord Genuity was paid a finder's fee of $105,000 and issued 700,000 finder's warrants exercisable at a price of 20 cents per share until Oct. 31, 2013. All securities issued in connection with the completion of the debenture issue have hold periods expiring Dec. 16, 2011.