Norex Details Interest in Ozona Project, West Texas Natural Gas Play
Northern Explorations has announced further details of the agreement on the "Ozona Gas Project," to be executed with Swiss-based resource management corporation Dominus Energy AG.
Norex is negotiating a 63% Working Interest in the project located near Ozona in Crockett County, Texas. Under the terms of the underlying agreement with the vendors, Norex will receive a 47.5% Net Revenue Interest in all natural gas production from the project.
The project encompasses 9,000 acres and is a well documented and prolific location enjoying the presence of actively established companies such as Chesapeake, Devon, EOG, XTO, and Quicksilver Exploration. Norex and partners will further detail the program following completion of the requisite documentation which will involve the drilling, completion and tie-in of 20 natural gas wells.
Norex CFO David Naylor comments, "We are very pleased to negotiate such a considerable Net Revenue Interest in this outstanding gas play and will be moving forward quickly to becoming cash flow positive by rapid acceleration of field operations. We believe that Norex can meet the drilling schedule as proposed by the operator of up to 2 wells per month which should provide us the operational cash flow towards fully exploiting the prospect."
The Company is a reporting issuer which provides public disclosure under the securities and exchange act of 1934. Complete details of our agreements will be filed as required by law and made available to the public under the auspices of the Securities and Exchange Commission (SEC).