Pexcon Finalizes Acquisition of Texas Gas Field

Pexcon has finalized the acquisition of 50% of the Boggy Bayou Field located in Matagorda County, Texas, and with partners will immediately begin reworking several wells in the field. Remaining reserves are estimated to generate revenues of approximately $9.8 million, and the company expects the revenue from the reworked wells to generate positive cash flow in the second quarter of 2005.

This field was discovered by Exxon and has produced approximately 10 billion cubic feet of gas from multiple Miocene sands above 6,650 feet. Deeper prospective zones have not been tested, however, 3-D seismic data indicates considerable potential remaining deeper on this structure in the prolific Frio sands, which abound in this part of Texas.