WTG Exploration Inc.

Transaction Type
Sellers
Marketers
Post Date
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Description

WTG Exploration Inc. has retained Simplex Energy Solutions to sell certain operated properties in Texas.

The package includes a development project covering 11,544 gross acres (9,642 net) in Dawson (8,440 acres) and Gaines (3,104 acres) counties targeting the Upper Mississippian and Cisco "Cline" formations as primary objectives. To date, 12 wells are drilled, three completing and nine in production. Of the total net acreage, 3,173 acres are already earned or held by production, and the remaining 6,142 acres continue under primary term leases with expirations from August 2012 through January 2015.

Production is 175.7 barrels of oil per day. Associated gas runs about 1,000 to 1,500 GOR, but is currently vented/flared pending connection to a gas gathering system. Analysis on just the Upper Mississippian suggests an original oil in place value of more than 70 million barrels of oil according to Simplex and is backed by geological study and mapping, and is being confirmed by drilling.

Upside includes two-year extensions available on the leases expiring in 2012 and additional development targets in the Clearfork, Spraberry, Wolfcamp, Canyon, Strawn, Atoka and lower Mississippian lime zones.

Contact David A. Fowler, 432-683-3791, dfowler@simplexenergy.com.