Deep Rock Oil & Gas Secures Credit Facility
Deep Rock Oil & Gas, Inc., along with other members of Z2, LLC (Z2) have closed a $40,000,000 Advancing Credit Facility with Gasrock, LLC of Houston, Texas on August 26, 2006. This financing will permit Z2 to further exploit its Big Foot Field holdings in south Texas. The financing will be utilized to rework producing wells which are currently not producing and to begin a drilling program on a portion of the 200 proven undeveloped locations contained in Z2's engineering report dated January 1, 2006.
According to Z2's most recent engineering report, the estimated future net revenue from the producing properties may be in excess of $38,000,000, and the estimated future net revenue from the Proven Undeveloped Properties (PUDS) yet to be drilled could be in excess of $353,000,000.
"With the Gasrock, LLC financing in place, Z2 and Deep Rock, as a member of Z2, should be able to increase the production of the Big Foot Field over the next couple of years. Deep Rock, as both a member of Z2 and consultant to the Operator of the Big Foot Field, is excited about the possibilities of increased production that this financing will allow," stated Robert Garner, CEO of Deep Rock.
Deep Rock owns a 6.29 interest in Z2, LLC. The field was recently valued at almost $19,000,000 by an independent third party.
In addition, Deep Rock also owns 5.8265% net profits interest in the Big Foot Field which benefits from the production from the field without any capital expenditures offsets.
- Deep Rock Oil & Gas Secures Credit Facility (Sep 28)
- Deep Rock Oil & Gas Spuds First Well in Four Well Project (Jan 12)
- Deep Rock Oil & Gas Acquires Oklahoma Acreage (Nov 09)