Galloway has provided a follow-up to the recent announcement regarding the pending acquisition of natural gas productions rights located in West Texas.
Further to the announcement on April 13th, and to clarify matters, Galloway has secured a first right of refusal to participate in a large, gas production project located on 12,900 acres in the Barnett Shale area of West Texas. The target property has over 115 working wells currently in production, as a result of which Galloway's participation will result in immediate cash flow for the Company.
This acquisition positions Galloway with a junior position alongside a list of distinguished and well established companies in the area such as Chesapeake, Devon, EOG, XTO, and Quicksilver Exploration. Given that the Barnett Shale is one of the largest sources of Natural Gas in the USA with proven reserves of 2.5 Trillion cubic feet (Tcf), the opportunity could well extend far into the future as it is widely believed that the true reserves have the potential to ultimately prove in excess of 30 Tcf.
Company President and CEO Shane Lowry commented, "Recent successes with hydraulic fracturing and horizontal drilling techniques increasingly enable local operators to push the horizon on this already prolific producing region. The growing requirements for clean energy will inevitably impact and increase the demand and price for natural gas. These basic factors proved very compelling to us and were instrumental in determining that the immediate acquisition of producing assets is an increasingly strategic approach towards a potentially highly profitable outcome. Galloway plans to continue our process of strategic acquisitions and will expand on this aggressive quest during what appears to be a period of significant undervaluation in order to roll up as many profitable opportunities as quickly as possible."
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