Exterra Enters to Take Stakes in Major Tx. Oil Field
Exterra has signed a letter of intent to acquire a significant interest in a major oil field in the state of Texas from a large Independent Producer. Exterra will be acquiring all of the Independent Producer's interest in one of the oldest and biggest producing fields in the State of Texas. Exterra will acquire both solid producing reserves and a very large proven undeveloped reserve portfolio. This project is very low risk due to a diversification of the portfolio with a large current producing component, a large work-over potential, deepening potential as well as new drilling potential. One recent engineering study estimated these proven reserves to be well over several million barrels of oil. The Company expects to close this transaction by the end of their fiscal year which is May 31, 2010.
Todd Royal, CEO commented, "This acquisition is the type of anchor project that Exterra has been looking to acquire for the past twelve months. It is anticipated that we will be able to use our current existing line of credit to close this acquisition."
Mr. Royal commented further, "a major goal of management is to increase shareholder value. This acquisition validates the beginning of such a goal."