Endeavor Enters JV to Further Develop Producing Asset in East Texas
Endeavor Power has entered into a joint venture agreement with Togs Energy, Inc., a wholly owned subsidiary of TXO, PLC, a Texas based oil and gas company with interests in over 348 wells in Eastern Texas. This joint venture calls for the continued reworking, further development and completion of six (6) wells in the Randle Fair Christian Lease (the "Lease") located in Gregg County, Texas. All Lease Operations will be conducted by M-C Production & Drilling Company, Inc.
In exchange for a cash investment of $600,000, of which $150,000 has already been tendered, Endeavor will receive a 75% working interest in the Lease. The joint venture with TXO provides that additional wells on the Lease may be drilled/deepened and/or that the parties may expand the joint venture to include other leases, further contributing to Endeavor's long term goals.
The project is described as a well deepening and re-work project, to a depth of 3,800' with the objective of reaching lower stringers of the Woodbine Formation in the East Texas Field, which covers over 140,000 acres and has historically proven to produce oil consistently. The East Texas Field, originally discovered in 1930, encompasses 5 counties in East Texas, is 45 miles long and 18 miles wide. Importantly, the Field has many additional targets, with up to 11,000 existing wells of those 8,000 are currently producing and 3,000 are ready for re-development, of which TXO owns 348 and is one of the largest and most prolific in the United States.
Also, negotiations in furtherance of that letter of intent announced on April 30, 2009 involving the Beck Lease in Bexar County, Texas have ceased, and the Company will no longer pursue that project.