2010-09-29-2010-09-28

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

To acquire 640 acres in North TX Barnett shale featuring one horizontal well, gaining projected 1.5 MMcf/d.

Exterra Energy Inc., Amarillo, Texas, (OTCBB: EENI) plans to acquire 640 acres in the North Texas Barnett shale from an undisclosed seller for an undisclosed price.

Exterra plans to frac a horizontal Barnett well on the acreage in the near term and increase production to approximately 1.2- to 1.5 million cubic feet of gas per day. Only one-third of the 3,000-foot horizontal leg has been frac'd. This is expected to increase the net cash flow from $20,000 to approximately $100,000 per month, according to Exterra.

In addition, Exterra acquired some workover opportunities with this purchase and believes this acreage should hold at least eight drilling locations with initial production rates of an average 1.2- to 1.5 million cubic feet per day.

The deal is expected to close in early October.