Lighthouse to Add 20 Oil Wells with New Acquisition
Lighthouse has instituted a new strategic business model for the identification and acquisition of approximately 20 oil wells over the next 24 months.
This new strategic acquisition model will entail identifying and acquiring at least one oil well each month (either shut-in or producing below its natural decline profile) with the possibility of producing anywhere from 5-10 barrels of crude per day once re-worked and brought back on-line. Capital expenditures associated with acquiring and repairing these wells will cost approximately $125,000 - $150,000 per well. If successful, Lighthouse Petroleum could potentially be producing well over 150 gross BOPD within 24 months with Annual Gross Production rates exceeding 50,000 barrels of crude once all 20 wells are on-line and producing.
"Management has been working tirelessly along side with our Board of Directors to ensure Lighthouse Petroleum can place together a comprehensive business model that can allow our company to acquire undervalued wells that have produced significant quantities of crude prior to declining below their natural decline profile," said Glen Kennedy, President of Lighthouse Petroleum, Inc. "The key to both the immediate and long term success for this M&A model has been to set achievable, yet measurable, goals. We feel that this strategic acquisition model that we have instituted for Lighthouse Petroleum will do just this thus allowing management the opportunity to potentially deliver greater shareholder value then our competitors," further added Mr. Kennedy.
The Company's strategic acquisition model will commence with the closing of the Brown County, Texas oil assets located within the prolific Bend Arch-Ft Worth Basin which is expected to occur within the next several weeks. Please visit our earlier press release related to the Brown County, Texas assets to learn more about this acquisition.