The discovery well S.L. 16995 No. 1 well was drilled in late 2003 and proved a total of 5 productive reservoirs. Since then the joint venture has drilled two successful development wells. The field is currently producing 5 million cubic feet of gas per day and 125 barrels of condensate.
The Company paid $2.5 million and issued 37,500,000 shares of Company common stock at $0.04 per share to Structured Capital Corporation for a total consideration of $4 million. The effective date of the purchase of the interests is April 1, 2006.
The Company believes that the Little White Lake property has considerable development and exploration upside in addition to the proven reserves.
The closing on the Little White Lake acquisition concludes the first production investment phase of Texhoma, with acquisitions totaling $10.5 million.
Funding for the acquisition was facilitated through a Joint Venture with an investment fund based in New York.
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