Stratex Oil & Gas Acquires Interest In Texas Lease
Acquired certain working interests in the Jeffrey Lease in Callahan County.
Stratex Oil & Gas Holdings Inc. (OTC: STTX) announced Dec. 3 that it acquired certain working interests in the Jeffrey Lease located in Callahan County, Texas.
Stratex will conduct various drilling, workover and completion activities on the property. The company will own a 64% working interest and a 48.64% net revenue interest in what will initially encompass a 60 acre pooled tract. The seller will be entitled to a 12.5% back in working itnerest and 9.5% net revenue interest, to be borne by all working interest owners. Stratex's after payout working interest will be 56% with 42.56% net revenue.
All work to be done on the Lease will be of a fixed turnkey nature, wherein the company will not be responsible for any cost overruns and would benefit from cost savings. Stratex, as the majority working interest owner, will initially have the right to participate in significant operational decisions and observe all aspects of the initial work program.
Total consideration to be paid by Stratex will include a cash payment of $308,800, plus the assignment to the seller of 150,000 shares of common stock. The purchase was financed with existing cash on the company's balance sheet.
The lease currently includes five wellbores, of which one is active but currently shut in, two are former producers capable of conversion into injection/salt water disposal wells, and two are presently salt water disposal wells. The work program will be completed by yearend 2013. The three locations to be drilled by Stratex and other working interest owners are all infill, within the productive limits of the EGN Field. The primary drilling objective of the three well infill program is the prolific King Sand, at a depth of 1,500 feet. The consideration for the acquisition includes the entire cost of the work program. Upon completion of the work program, Stratex will have the right to assume the role of operator.
Depending upon the results of the work program, this project and general geographic region could represent a new core focus area for Stratex.
"Stratex is excited at the prospect of adding meaningful incremental production and proved reserves, due to this acquisition. There are also deeper pool opportunities along stacked pay reservoir systems for future potential exploitation. We will actively be seeking bolt-on properties in order to increase our footprint within this area. Stratex's management remains fully committed to increasing shareholder value," Stephen Funk, chairman and CEO, said in the release.
Stratex Oil & Gas Holdings Inc. is an independent energy company focused on the exploration, acquisition, and production of crude oil in the Bakken and Three Forks formations in North Dakota and Montana. The company is based in Watertown, Conn.