Upon completion of the transaction, the company will retain two producing leases located in Gray County in the US state of Texas.
Gryphon will also continue as an oil and gas operator under a license from the Texas Railroad Commission.
The transaction is expected to close in the fourth quarter of this year, subject to customary closing conditions.
Chancellor Group chairman and CEO Maxwell Grant said the four producing oil wells and one water disposal well on the two retained Gray County leases will provide the company with steady production and allow it to continue its oil and gas operator’s license.
