Matrixx Resource Holdings, Inc. has entered into a definitive agreement whereby acquiring a 10% working interest in a gas lease located in the Gulf of Mexico.
The Company announced late last year its intent to acquire five Gulf of Mexico leases. The first acquired lease, known as the Viosca Knoll Block 79, is a 5,760 acre lease located in 79 feet of water off the coast of Alabama. The majority working interest owner and operator has proposed to drill two wells in order to test the near 2,500-foot stratigraphic amplitudes derived from 3D seismic data. The first of the two wells to be drilled is expected to commence in approximately 60 to 75 days and will be the northern prospect. Based on the results, drilling of the second well would take place in the southwest quarter of the block.
The first of the two wells is expected to drill to approximately 2,500 feet covering a net sand of 20 feet over 303 acres with a possible reservoir of 4.757 Billion Cubic Feet of Gas (BCFG). The high end potential of the first well covers 618 acres, with a potential average net sand of 25 feet that could result in 12.128 BCFG.
The second prospect, located to the south, is comparative to that of the northern prospect covering 142 acres to as much as 300 acres. The average net sand is expected from 20 to 25 feet. Using a recovery factor of 785 mcf/acre foot, the reservoir potential range is from 2.229 BCFG to 5.887 BCFG.
Data from prospects in the immediate vicinity of the VK 79 have produced 11.3 BCFG covering 975 acres in 18 feet of sand at a depth of 2,330 feet from one block, 4.7 BCFG from 597 acres in 34 feet of sand at 2,052 feet. Three other blocks adjacent to VK79 have produced 4.5 BCFG at similar depths and similar acreages. The 3D seismic amplitude analogy between VK 79 and the aforementioned blocks show similarity in thickness and continuity over the anomaly giving us some validity to the VK 79 Block.
An independent 3D seismic geophysical assessment performed on the leases indicated the potential for finding a low range case of 6.986 BCFG with a high range of 18.015 BCFG. Today, natural gas prices are currently trading at approximately $8.5 million per BCFG. Matrixx has remained steadfast in its efforts in acquiring growth and investment opportunities in the oil and gas sector with the intent of providing the Company and its shareholders a much-improved increase in shareholder value.
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