King Resources Acquires Stake in Gulf of Mexico Blocks
King Resources has executed a Letter of Intent with Capco Energy, Inc., whereby King will operate and earn a 50% working interest in Vermillion Blocks 112 and 113 by drilling a wildcat well to a total depth of 15,000 feet. Due to the acquisition of the prospect and other exploration opportunities, along with the company's small public float, a decision was made to rescind the previously announced reverse split. Management recognizes the confusion regarding the reverse split, however, it is important to note that King's management sees new opportunities on a daily basis.
Vermillion Blocks 112 and 113 totaling 10,000 acres are located in federal waters approximately 30 miles off of the Louisiana coast in 40 feet of water. The seismic stratagraphic analysis of the prospective zones in this prospect exhibit a thick sand section with stacked amplitude anomalies which suggest potential multiple pay zones. The presence of gas, condensate and oil is expected based upon cores taken from a well in Vermillion Block 109, four miles to the northwest.
Geological and geophysical data based upon 3-D seismic indicate the probability of multiple gas, oil and condensate reservoirs down to a depth of 15,000 feet or deeper, with the possibility of potential reserves of approximately 250 billion cubic feet of gas. King will receive 75% of the net revenue until payout of the first well. Thereafter, all revenues and costs on this and subsequent wells will be shared on a 50-50 basis. The leases have a 20% royalty and override, leaving an 80% net revenue interest to King and Capco. The estimated drilling cost for the first well is $6.5 million with a projected total cost of $100 million to develop the field if the projected reserves are correct, of which $55 million of the total cost will be allocated to King.
King's team has extensive offshore exploration experience in drilling, designing production platforms and production. King's team has evaluated and developed projects in the Gulf of Mexico, the North Sea, offshore Nigeria, and other areas.
King Resources is a development stage Exploration and Production company. King's senior management and corporate advisors have over 130 years oil and gas experience. Three members have each held senior management positions in other public companies, including CEO positions in one NYSE Company and one AMEX Company, CFO positions in three NYSE and one NASDAQ companies, and Exploration & Production management in two NYSE companies.
In addition to the offshore blocks mentioned above, major assets
include 170,000 linear miles of 2D Seismic along with over 1,000 old
well data packages in Texas, Louisiana, and Mississippi, 100% working
interest in approximately 2,700 acres in the Fayette Field, Jefferson
County, Mississippi, a Joint Venture agreement under which it acquired
a 50% interest with Carpathian Energy Companie Petroliera, SRL, in the
Calinesti Field, in the Alexandria block, 100 kilometers southwest of
Bucharest, Romania. The block covers 475 square kilometers (189,000
acres), and is south of the Hirlestti field complex and surrounds the
Ninciulesti and Buzescu gas fields, and other areas of interest.
- Pyramid and Capco Part Ways on Aquisition Plan (Jan 16)
- Capco to Become Subsidiary of Pyramid (Jun 11)
- Capco Energy Expands Gulf of Mexico Acreage (Sep 13)
Company: King Resources more info
- King Appoints Harris as Chairman, Prepares for Huge Seismic JV (Jan 28)
- King Resources Announces Audit Update (Dec 14)
- King Resources Acquires Stake in Gulf of Mexico Blocks (Jun 08)