Maxy Oil Makes 2nd Discovery on Liverpool Prospect
Maxy Oil & Gas reports that the Mina Travis No. 1 well has been completed in the Tuscaloosa "A" sand interval at approximately 12,700 feet. Testing of the well was completed March 12, 2003, and the well declared to be a commercial success. The Mina Travis is the second straight success in the newly discovered Liverpool Oil Field in St. Helena Parish, Louisiana after the discovery well, the Lucy Lee Well #1, which is currently on production on the field. The successful well test further confirms the discovery of significant oil and gas reserves in the Field.
The well is currently shut-in for bottom hole pressure build-up testing, after which it will be put on production. Data received from the first two wells in the field are now being analyzed to determine the optimal locations for subsequent wells to further develop the Liverpool Oil Field The Lucy Lee No. 1 well is currently producing at daily rates of 71 Barrels of oil, 230,000 cubic feet of gas and 280 barrels of water. Cumulative production to date is over 25,000 barrels of oil and 60 million cubic feet of natural gas.
The operator of the well is Land and Natural Resource Development Company, a privately owned company located in Tuscaloosa, Alabama. 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.