The agreement calls for Matrixx to acquire an undivided 55% working interest in the Manvel Miocene covering 160 acres of land and an additional undivided 55% working interest covering 60 acres of land in the Manvel Oakville, both of which are located in Brazoria County, Texas.
Shallow exploratory wells will be drilled on the Manvel Miocene property to a depth of approximately 2,000 feet. A series of shallow development wells will be drilled on the Manvel Oakville prospect to a depth of 4,500 feet to test offsetting and updip to an already producing Davis No.1 well.
Drilling is expected to begin before year end 2006. Recoverable reserves for the two projects are estimated at 500,000 Bbls (500,000 barrels) of oil for each of the prospects. Net drilling cost is expected at $100,000 and net $170,000 respectively. Additional information describing these and other prospects previously announced by Matrixx will be forthcoming in a letter by the Company to its Shareholders. Matrixx will continue to seek additional opportunities to add value to its property holdings through acquisition. Matrixx believes that these additional assets will provide the Company and its shareholders a much-improved increase in shareholder value. Further, the Company will be filing the required forms and exhibits with the SEC and sending notice to shareholders on a timely basis. Terms and conditions of the transaction will also be provided in the aforementioned notices. Closing is expected to occur no later than September 15, 2006.
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