West Texas Resources Acquires Port Hudson Interest

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
$0.7MM
Description

To acquire WI in oil and gas leases, wells and attendant production in the Port Hudson field.

West Texas Resources Inc. (OTCQX: WTXR), a Texas-based independent oil and gas company, has announced its acquisition of a 7.24625% working interest in the oil and gas leases, wells and attendant production in the Port Hudson field, Baton Rouge Parish, La., for total consideration of $702,900.

The Port Hudson field has three producing wells that have produced a total of 1.1 million barrels (bbl.) to date, with estimated total remaining recoverable proved developed producing reserves of 294,000 bbl., and 229,000 bbl. of proven developed behind pipe reserves. The wells are currently producing 290 bbl. per day. West Texas' working interest is subject to certain overriding royalty interests, subject to which West Texas has a 5.65207% net revenue interest in the Port Hudson field.

Stephen Jones, CEO of West Texas Resources, said, "The transaction represents our first meaningful oil and gas acquisition. Our working interest provides us with a substantial amount of net reserves and the cash flow from production should put us close to break-even on a cash flow basis."

The company is based in Frisco, Texas.