MASS Petroleum Enters LOI for Kansas Leases
MASS Petroleum has signed a LOI with JKA Ventures to acquire various oil and gas leases located in Kansas, USA.
The leases available to MASS Petroleum include high working interest oil operations with current production at approximately 12 bbl/d from several leases located in Crawford County Kansas. In addition, there are other prospective leases in the area MASS Petroleum will have access to as well for further development and drilling purposes.
The bulk of the production of the oil leases derives from the Bartlesville and Cattleman formations of Pennsylvanian age which fit into MASS Petroleum's target area as mentioned earlier. The preliminary terms of the LOI assign a cost of the acquisition at $ 800,000 USD subject to MASS Petroleum completing its due diligence on the target leases in order to determine their economic value in today's market.
MASS Petroleum has been continuing its efforts to determine key areas of interest through evaluating oil and gas assets with development and drilling upside potential. MASS Petroleum has determined the Kansas areas provide low-risk, multi-well oil and gas investments via direct participation programs through a direct ownership position in the wells or joint venture opportunities. Key facts about Kansas oil production include:
- The first oil well in Kansas was drilled in 1860.
- Currently Kansas produces oil and gas in 89 of the 105 counties.
- Over 4000 permits to drill have been issued in Kansas to date.
- The average well depth is about 3,500 feet.
- Over 59,000 wells are actively producing oil and natural gas in Kansas.
- 70% of the wells produce oil and the other 30% produce natural gas.
- There are over 2100 oil and gas producers operating in Kansas.
MASS Petroleum is excited to increase its cash flow through this acquisition and plans to use the funds to acquire additional production assets with similar parameters.