Maverick Energy Signs Big Foot Contract
Preliminary tests indicate the field could deliver between 300 and 500 MCFs per day to the first purchaser. The construction and repair of the gathering system in the field are part of the operations planned by Maverick, as a member of Z2, with funding from the $40,000,000 Advancing Credit Facility which Z2 closed with Gasrock Capital, LLC in August of 2006.
Maverick is the operator of the field and owns 11.5% member interest in Z2, the owner of the field, and currently holds an option to acquire an additional 13.184% membership interest in Z2. Maverick's option exercise price is $1,000,000 and may be exercised at any time through July 17th, 2007. If it were to exercise this option, Maverick's membership interest in Z2 would increase to approximately 24.7%.
"The signing of the gas contract for the Big Foot Field is another revenue opportunity made available by Z2's Gasrock financing," stated Jim McCabe, CEO of Maverick.
Maverick Energy Group, LTD is the Operator of the "Big Foot Field" in Texas originally developed by Royal Dutch Shell (RDS-A). It has approximately 300 production wells in the field of which approximately 240 are presently revenue producing. Maverick is also the part owner of several producing natural gas wells and owns additional natural gas leases in West Virginia. The President of Maverick also serves as Chief Financial Officer of Z2, LLC.