Maxy Oil Begins Drilling on 2nd Church Creek Prospect
Maxy Oil & Gas has commenced drilling on its second well, the Mina Travis No. 1, on its Church Creek Prospect in St. Helena Parish, Louisiana. The first well on the Church Creek Prospect, the Lucy Lee #1, discovered the new oil field, which has been designated by the State of Louisiana as the Liverpool Field. Maxy estimates that it will take approximately 5-6 weeks to drill to the proposed total depth of 13,000 feet, run open-hole logs and test the well. The Mina Travis #1 well is a development well and is designed to help delineate the full extent of the newly discovered Liverpool Field. The well's location is expected to be in a structurally superior position to the Lucy Lee #1 well.
The Lucy Lee #1 well is currently producing from the Tuscaloosa Sand at rates of about 95 barrels of oil, 250 thousand cubic feet of natural gas and 300 barrels of water per day. Cumulative production to date is approximately 19,200 barrels of oil and 46.5 million cubic feet of natural gas.
Maxy has a 25% working interest in the well, which is subject to a 25% back-in after payout. The remaining 75% working interest is held by private investors. The net revenue interest (after royalties and overrides) to working interest owners is approximately 75%. Therefore, after payout of each well and back-in, Maxy will have an 18.75% working interest and a 14.1% net revenue interest.