Texola Acquires Stake in Nevada Prospect

Texola Energy has acquired a 100-percent working interest and an 80-percent net royalty interest in the Maverick Springs Prospect in Elko and White Pine counties, Nevada. Cedar Strat will retain a 15-percent back-in working interest after payout.

The 100,000-plus acre Maverick Springs Prospect is a fractured shale play where Mississippian Antler foreland basin source and seal rocks are thick, rich, and thermally mature. Mississippian Antler is part of the western North American Cordillera that extends from Alaska to Mexico. Some of the world's richest hydrocarbon source rocks were deposited in the Antler Basin. Much of the basin was disrupted by Cretaceous Sevier thrust belt that created many oil and gas field structures and fractured the source rock shales.

Texola points out that thrust belts and associated foreland basins contain approximately one-quarter of the world's proven oil and gas reserves. Like Utah/Wyoming and central Utah portions of the Sevier thrust belt, the Nevada portion contains large folded structures and thrust fault traces. The company adds, however, that the Mississippian source rocks of Central Nevada thrust belt are several times thicker and richer than the Cretaceous source rocks of central Utah.

Texola believes that its Maverick Spring's prospect contains the potential for large compressional structures similar to those in thrust belts around the world. Surface mapping, gravity data, and subsurface geology and aeromagnetic data were used to identify the Maverick Springs prospect area. Based on information provided by Cedar Strat, the Maverick Springs prospect reportedly has estimated in place potential reserves that could be as prospective as the Barnett Shale play in Texas.

Cedar Strat will conduct a detailed gravity survey for Texola over the Maverick Springs area this spring. The new gravity survey will help Texola model the structure of the prospect and determine optimum drilling locations.