Ness Energy Makes First Oil and Gas Lease Purchase
Ness Energy International reported today bringing online the first producing oil well on the Rogers Lease in Young County, Texas. NESS completed the purchase of this lease on 22 January 2008. The lease includes 13 producible wells in addition to 1 water injection well on 137 acres. The terms of the transaction were not disclosed.
Mr. Alan D. Stricklin, who is the President/CEO/Chairman of NESS, was present when the well began producing oil. Mr. Stricklin stated, "This lease represents one of a sector of leases we will be looking to acquire in the future. This sector of interest will typically be older leases with wells that are presently producing or can be made to produce. This type of lease will have the acreage and formations that could produce a steady flow of oil and/or natural gas. These leases will also give us the opportunity to drill additional wells on existing acreage. These types of wells are considered 'stripper wells', meaning they produce less than 10 barrels of oil per day. However, a well that produces 5 barrels of oil in today's market will make a reasonably good income stream for the company. NESS is presently looking for additional acreage and wells that fit in this sector.
"Presently NESS is also looking for opportunities to acquire additional producing wells and leases. With many companies looking for large production projects, the smaller wells and leases provide situations that engender a stable base for a growing oil and gas company."
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- Ness Energy Makes First Oil and Gas Lease Purchase (Jan 24)
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