Galloway has entered into an agreement with Swiss-based resource management corporation Dominus Energy AG whereby Galloway has secured a first right of refusal to purchase 50% of Dominus' working interest in a large, gas production play located in West Texas.
Dominus has signed a Memorandum of Understanding ("MOU") with the vendor thereby securing Galloway's interest in the play subject to the results of an ongoing due diligence assessment. It is anticipated that a formal purchase and sale agreement will be executed by all parties within approximately 5 business days.
The Texas Gas Project currently consists of 22 existing production gas wells. The wells have tested in the 350 Mcf per day range. The project encompasses 10,000 gross acres and has the potential, if fully developed, to contain over 350 gas wells.
Galloway President Shane Lowry states, "We are very pleased to be participating in our first production scenario. A rapid tie-in of these four wells will make Galloway a cash flow positive Company in very short order and move us forward towards the goal of increased production in 2009."
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