Mexco Energy Corp. announces drilling of properties, acquisition
MIDLAND, Texas -- Mexco Energy Corporation has announced the drilling of certain properties in the Permian basin of West Texas and the acquisition of producing properties in four states.
Mexco Energy Corporation is participating as a working interest owner in a JV drilling four vertical development wells to a depth of 11,000 ft on 160 acre spacing in the Dean, Wolfcamp, Cline and Atoka formations on 640 acres in Reagan County, Texas. Initial per day production rates from two of these wells respectively are 128 bbl of oil and 110,000 cubic feet of natural gas and 94 bbl of oil and 179,000 cubic feet of natural gas. Mexco' s working interest in this JV is .3% (.24% net revenue interest).
These wells will hold the deep rights for further development by horizontal drilling. The Wolfcamp formation in this area is an approximately 1,700 ft thick section consisting of interbedded organic shales and carbonates and includes two reservoir units, the "A" and "B" benches that have both been successfully developed with horizontal wells. These four vertical wells in Reagan County, Texas, are in addition to two horizontal wells in which Mexco is also participating in Reagan County, Texas.
Also, Mexco has acquired for $450,000, a package of non-operated producing properties consisting of 10 oil wells and 1 gas well located in Webster Parish, Louisiana; Eddy County, New Mexico; Billings County, North Dakota; and, Nolan and Smith Counties, Texas. The purchase price was funded from the company' s $4.9 million bank credit facility.
This purchase, effective March 1, 2014, includes working interests ranging from 27.5% to .13% (net revenue interests of 24.06% - .11%) adding estimated net proved reserves of approximately 35,000 boe at a cost of $12.86 per bbl.