Texas Oil and Minerals Inks LOI to Develop Tx. Field
Texas Oil and Minerals has signed a binding Letter of Intent to develop a 258 acre field located in Damon Mound Field in Brazoria County Texas. This will be the 2nd Acquisition for Texas Oil and Minerals in the high producing Damon Mound Field.
The Damon Mound Field is located on a Salt Dome which was discovered in 1915 but not developed until 1925. Since that time there have been hundreds of wells drilled, which produce from a number of different horizons including the Het Limestone, Catahoula, Frio, Vicksburg and the Miocene. The dome has produced over 5.6 million barrels from these sand with the average well producing around 60,000 barrels per well.
"We are very pleased with our initial acquisition's and believe this additional acquisition continues the company's development plans to further increase the asset and cash flow models," stated Tom Gouger, CEO of Texas Oil and Minerals.
The existing wells and will be re-entered and cleaned up to enhance pressure to expedite recovery. The Company plans to commence drilling at the beginning of the 1st quarter of 2012. The Company has agreed to make all and best efforts to complete and execute the Definitive Agreements to acquire this lease from the current lease holders by September 30, 2011.