Paxton Energy announced recent business developments. Paxton Energy's business strategy, predicated upon proper funding, includes the acquisition of oil and gas properties and exploration activities. In implementing its strategy, management seeks to acquire, discover and develop oil and gas reserves and achieve continued growth while focusing on cost control.
Recent Paxton Energy developments include:
- April 13, 2010 - Paxton announced that it has agreed to purchase a full 100% interest in the Jaspers, Concho and Menard County oil wells from DEEJ Consulting LLC. The wells are located in Concho and Menard Counties, Texas. Paxton believes that the acquisition will immediately generate $50,000 in new cash flow for the Company. Planned re-work activities on the wells are expected to significantly increase production and resulting cash flow. According to independent engineering reports obtained by Paxton, the net present value of the wells after all recovery expenses exceeds $2.2 million. This assessment was based on an average price of $69 per barrel of oil at a discount rate of 10% (PV-10). Paxton has agreed to a total purchase price of $700,000, consisting of $600,000 cash and $100,000 in shares of Paxton's common stock. The deal is expected to close within 30 days. "The immediate and near-term prospects for these wells will allow Paxton to fund its operations in 2010," stated Charles Volk, CEO of Paxton Energy. "This acquisition will also position Paxton as an established, viable, independent developer of oil & gas properties."
- March 25, 2010 - Paxton entered into a "Change of Control and Recapitalization Agreement" with Charles Volk of San Francisco, California. On that same day, all directors and officers of our company resigned and were replaced by Charles F. Volk, Jr., James E. Burden, and Clifford Henry as directors and Charles F, Volk, Jr. as CEO, Treasurer (Chief Financial Officer) and Chairman of the Board of Directors and James E. Burden as President and Secretary.
The company has a minority working interest in limited production and drilling prospects in the Cooke Ranch area of La Salle County, Texas, and Jefferson County, Texas, all of which are currently being operated by Bayshore Exploration L.L.C. Paxton's working interest in these wells ranges from 3.97% to 31.75%. As of April 15, 2009, the Company had wells with aggregate net production of approximately 440 thousand cubic feet (440 Mcf) of gas and 180 barrels of oil per month. The company maintains significant acreage of both developed and undeveloped oil and gas leases.
The company intends to acquire existing revenue-generating production with proven undeveloped reserves and to evaluate the area surrounding the Cooke Ranch to determine an appropriate strategy in an effort to increase production and cash flow and build reserves through acquisition, exploration, and development drilling.