Northern Minerals & Exploration Ltd. (OTC: NMEX) entered into a purchase and sale agreement for a 37.5% working interest (WI) in three wells on a Texas lease, the company said April 9.
The lease in Coleman County is on 206.5 acres in a multiple pay zone. The historically productive formations are Ellenberger (4,200 feet [ft]), Gray (3,850 ft), Gardner (3,700 ft), Jennings (3,600 ft), Upper Capps (3,450 ft) and Morris (3,400 ft).
Just one well is a direct offset to a well on an adjoining lease that has produced more than 65,000 barrels (bbl), and 160 million cubic feet (MMcf) of gas from the Gray Sand formation. The offset well is producing 6 bbl and 28 Mcf/d of gas.
The wells have downhole pumps, rods, tubing, pump jacks and various wellhead and surface equipment.
The funders will receive half of the WI revenue from the wells until their $180,000 payout is met. Then, they will receive 37.5% of the revenue.
Arrangements are being made with service providers to begin field operations on the wells, the company said.
Additionally, the company said it appointed Ivan Webb as vice president and a director.
Northern Minerals & Exploration Ltd. is based in Cisco, Texas. It produces oil in central Texas.
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