Matrixx Oil & Gas Takes 10% Stake in five Gulf of Mexico Leases
Matrixx Resource has signed an MOU whereby it agrees in principle to acquire a 10% interest in five oil and gas leases in the Gulf of Mexico.
The leases are located off the coasts of Texas, Louisiana, and Alabama and cover 5,000, 2,000, 5,000, 5,760 and 5,760 acres respectively. Each lease area is located in relatively shallow water ranging from 97 feet to 240 feet. Currently, there are plans to drill 14 wells on the leases. The first well is scheduled to begin drilling by the end of 2007. Drilling is expected to continue on the 13 additional wells in 2008 and 2009.
Independent geophysical assessment has been performed on the leases by using 3D seismic survey. Initial prognosis for the14 wells indicates aggregate production ranges of 68.3 BCFG to 119.6 BCFG and 13MMBO to 18.75 MMBO.
The Company has begun negotiations with its financial partners and is arranging funding for the dry hole and completion costs that are expected to be incurred from the aforementioned 14 wells. To facilitate the financing for the lease acquisitions and required drill programs, the Company and its majority of shareholders have agreed to complete a 1 for 250 reverse stock split. Upon completion of the reorganization, the Company anticipates closing on the funding for the first drill program. Additional information pertaining to the leases, drill programs, and financing will be released as it is made available.
Matrixx has remained steadfast in its efforts in acquiring growth and investment opportunities in the oil and gas sector with the intent of providing the Company and its shareholders a much-improved increase in shareholder value. Additionally, the Company is positioning itself to aggressively exploit its' properties to accelerate cash flow and to provide rapid returns on its investments in the oil and gas sector.
- Matrixx Acquires Interest in Second Offshore Oil & Gas Lease (Feb 21)
- Matrixx Acquires Interest in GoM Gas Lease (Feb 19)
- Matrixx Oil & Gas Takes 10% Stake in five Gulf of Mexico Leases (Oct 09)