Brazos International has executed a Letter of Intent to purchase Renfro Energy. RE primary assets is its 100% interest in an oil producing property located in Southwest Louisiana with significant development and exploration potential.
In exchange for cash consideration and a net profits interest in the property, BRZL will purchase 100% of the membership interests in RE which includes the company's two producing oil wells making 12-15 barrels per day, one saltwater disposal well, one shut-in well designated for exploration drilling, several pumping units, an oil, gas, and water separation facility, an oil and water pumping facility, an oil and gas storage facility, and five square miles of 3-D Seismic data processed and partially evaluated.
It is anticipated, based on 3-D Seismic data and subsurface geology, and upon completion of a $2 million development drilling program, the property's daily oil production could exceed 100 barrels. However, there can be no assurance that the achievement of daily production will reach 100 barrels per day.
"Having an asset like this property provides the necessary foundation for BRZL to build upon With positive cash flow from day one and 880 acres of development and exploration acreage to exploit utilizing the 3-D Seismic data, we are very excited to get started and initiate a drilling program to generate significant cash flow and increase shareholder value," stated Samuel Weiss, BRZL's President.
The property, which has produced over 6 million barrels of oil since its initial discovery well drilled in the 1930's, has potential for additional oil reserves.
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