Superior Oil & Gas Acquires 28 Gas Wells
Superior Oil & Gas has executed an agreement to acquire 28 natural gas wells in the Cherokee Basin, located near Southeast Kansas and Northeast Oklahoma, reported Dan Lloyd, CEO of Superior.
Nine of the 28 wells are currently producing 110,000 cubic feet of gas a day. An additional three of the 28 wells have been drilled, tested and completed and await only the final installation of pump jacks. The remaining sixteen of the 28 wells were producing wells earlier but were shut in due to low prices for natural gas and require today varying degrees of work-over to become productive again. The 28 wells will be acquired from William Foster, owner of Conquest Distribution Inc. and Foster Oil and Gas, for 300,000 shares of restricted SIOR common stock. The closing of the transaction should occur within one week with a January 1, 2006, effective date of the transfer of production.
"This is our first acquisition that will generate immediate revenues for our company," said Lloyd. "In addition, we believe many of the presently non-producing wells that are part of this transaction have considerable potential. We are focused on creating shareholder value and are quite confident this acquisition from Mr. Foster does just that."