2010-06-21-2010-06-15

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
$1.7MM
Description

Bought 6,800 acres in NM Permian Basin, gaining 54 BO/d.

Doral Energy Corp., Midland, Texas, (OTCBB: DRLY) has acquired approximately 6,800 acres of producing oil and gas assets in the Permian Basin in southeastern New Mexico from an undisclosed seller for $1.7 million.

The assets comprise 15 leases, which are currently producing about 54 barrels of oil per day from the Permian-age, San Andres formation, at a depth of 4,100 feet. Working interests range from 37.9% to 100%, with associated net revenues ranging from 32.3% to 87.5%.

The acreage is adjacent to other San Andres production, giving Doral the opportunity to down-space to exploit undrained acreage and also to stimulate existing wells to maximize production.

Doral chairman and chief executive E. Will Gray says, "Management is pleased to close on this acquisition as it provides immediate shareholder value after the recent divestiture of certain Permian oil and gas assets. This acquisition further outlines our exploration model of applying current technology and suitable capital towards maximizing legacy assets."

Doral anticipates acquiring additional assets in the Permian Basin in Texas and New Mexico.