HOUSTON--(BUSINESS WIRE)--April 4, 1997--Oilex Inc. (NASDAQ-BBS:OLEX)
announced today it has closed on its acquisition of 209 productive oil and gas
wells situated on 3,000-plus acres of leases in the prolific Luling Field.
The acquisition comes complete with existing producing oil and gas wells,
three swabbing units, fully staffed field and office personnel, supply room,
shop and all other items necessary to run this field operation. All wells are
perforated from the Austin Chalk / Navarro Formations at 2,500-feet plus.
OLEX will utilize its swabbing technique as well as United Energy's (BBS
Symbol - UNRG) KH-30 compound to enhance field production and increase
revenues. In addition, OLEX will be reperforating, recompleting, opening
additional pay in existing wells and drilling new in field wells over the next
12 months to further increase revenues. The property has room for a minimum of
100 new in field wells. The estimated remaining recoverable in place reserves
are four million barrels of oil equivalent. OLEX paid $2 million cash
equivalent for this acquisition.
In related news, OLEX is moving forward on its stock exchange agreement
with privately owned Geronimo Holding Corp. (Midland, Texas) to acquire
approximately 655 oil and gas wells; 240,000 acres of leases; estimated oil
reserves of 500 million barrels; estimated gas reserves of 4.5 trillion cubic
feet, $16 million in estimated 1997 positive cash flow; situated on 302 leases
in 13 states. |
