Texhoma Enters Into Agreement To Acquire Oil And Gas Production
September 26 2005 - 9:00AM
Business Wire
Texhoma Energy, Inc. ("Texhoma") (OTCBB: TXHE) is pleased to
announce it has executed a sales and purchase agreement for the
acquisition of two oil and gas producing properties in Louisiana.
The first property is a 7.243% WI (NRI 5.381%) interest in the
Barnes Creek field which current Gross Production is approximately
2.4 million cubic feet of gas and approximately 210 barrels of
condensate per day from the L&H Partnership No. 1 well. The
field covers 320 acres and is located in Allen Parish Louisiana.
The Edgerly Field is located Calcasieu Parish, LA and comprises
approximately 800 acres with 5 producing completions from 4 wells.
Current Gross production is about 930 barrels of oil and 1.2
million cubic feet of gas per day. The field has one development
location for further production enhancement. The subsurface control
is excellent as the field is covered by a 3D-seismic survey. The
ownership working interest to be acquired is 11.76% with an 8.472%
NRI. The Company has agreed to pay US$4.75 million for the
interests in the two oil and gas fields. The acquisition has an
effective date of September 1, 2005 and completion of the
acquisition is expected within 45 days and should result in an
estimated cash flow of approximately $175,000 per month to the
Company. Texhoma is arranging for debt-financing, details of which
will be announced when appropriate. The equity-part of the
financing will be raised through private placements of shares. An
independent reserve report has been prepared by R.A. Lenser and
Associates which has attributed a pre-tax, 15% discounted value of
approximately US$9 million to the Proven Developed Producing (PDP)
reserves of the two properties, using a $50-oil and a $8-gas price.
PDP-reserves are estimated to be approximately 218,000 barrels and
570 million cubic feet of gas net to the Company. Further Proven
Undeveloped reserves are available in the Edgerly field. With this
acquisition the Company has secured a significant income stream at
minimum equity dilution to the shareholders. Safe Harbor Statement:
"This News Release may include forward-looking statements within
the meaning of section 27A of the United States Securities Act of
1933, as amended, and section 21E of the United States Securities
and Exchange Act of 1934, as amended, with respect to corporate
objectives, projections, estimates, operations, acquisition and
development of various interests and certain other matters. These
statements are made under the "Safe Harbor" provisions of the
United States Private Securities Litigation Reform Act of 1995 and
involve risks and uncertainties which could cause actual results to
differ materially from those in the forward-looking statements
contained herein."
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