Maxy Oil Makes Second Louisiana Discovery
Maxy Oil & Gas
|Monday, February 10, 2003
Maxy Oil & Gas Inc has completed logging and coring operations on the Mina Travis No. 1 well, its second well in its newly discovered Liverpool Field (Church Creek prospect) in St. Helena Parish, Louisiana. Core and log data indicate that the Tuscaloosa Sand Interval at this location is well developed, with excellent permeability and porosity characteristics and that the well has a potential net pay of approximately 20' of oil. This would be more than double the pay seen in the discovery well, the Lucy Lee #1. Initial indications are that the Mina Travis well has discovered a second producing Tuscaloosa Sand reservoir in the field, separate from the reservoir producing in the Lucy Lee #1 well. Presently, operations are underway to set production casing and to prepare for the completion of the well. Flow testing of the well is expected to begin in about ten days. The operator of the well is Land and Natural Resource Development Company, a privately owned company located in Tuscaloosa, Alabama. Maxy has a 25% working interest in the well, which is subject to a 25% back-in after payout. The remaining 75% working interest is held by private investors. The net revenue interest (after royalties and overrides) to working interest owners is approximately 75%. Maxy's working interest after payout and back-in will be 18.75% and its net revenue interest will be 14%.