Yes, Tom, it sure is.
Here's a news release today from the company. I've been to their web site and checked out their news releases. They seem like a legitimate company. Apparently they drill rather shallow and horizontally in coal beds seeking methane. Unlike other kinds of deep drilling which takes a long time, if they are going to hit pay-dirt, it apparently is not unusual to do it within three weeks. They have a producing well, and are continuing to acquire rights in Oklahoma and I think in the Northwest, too, and to commence other drilling exploration activities.
BUT, what bothers me is the chart. It's just TOO regular, as if there might be some manipulation.
Catfisher
LAS VEGAS, Jun 8, 2004 /PRNewswire-FirstCall via COMTEX/ -- Lexington Resources, Inc. (LXRS) (the "Company"), further to its May 18 news release, announces that drilling has again commenced on its Wagnon lease for the drilling of Coal Bed Methane ("CBM") gas. The Kyndal #2-2 horizontal well follows the Company's successful drilling of the Kellster 1-5 well, completed in February 2004. The Kyndal #2-2 is the second of an expected four or more wells to be drilled by the Company on the Wagnon lease.
Drilling and completion time is estimated at 2 to 3 weeks. Depths and drilling protocols will be similar to those previously experienced as the Kyndal #2-2 is located within proximity to the Kellster 1-5 well. Any production derived from the Kyndal #2-2 will utilize the same compressor and base infrastructure already operating the Kellster 1-5 well and feed into the gas gathering systems established earlier this year. These systems were recently sized by Lexington to accommodate the Company's future drilling requirements on the lease. The scientific, geophysical, geological, surface support, and drilling teams are the same as those utilized successfully on the Kellster 1-5 well.
A third well, the Bryce #3-2, is still scheduled to follow the drilling of the Kyndal #2-2 immediately after well completion. Private drilling funds are providing the capital costs of the first three wells on the Wagnon lease, and the Company's operating subsidiary will "back-in" to a residual 53.2% working interest in net proceeds from well production after capital repayment.
Future Drilling: A total of four to five horizontal CBM gas wells are planned on the Wagnon lease. Other major companies drilling in the fairway are Williams Energy (WMB), Questar Corporation (STR), and Devon Energy Corporation (DVN) amongst others.
About the Drilling Play: The drilling site is located in the Hartshorne coal zone fairway of the prolific Arkoma Basin, in the middle of one of the largest CBM drilling programs undertaken in the State of Oklahoma. According to the Oklahoma Geological Survey, 865 (40%) of the 2,179 CBM completions in Oklahoma from 1988 to 2002 were located in the Arkoma Basin. Wells adjacent to this property have average initial production of between .5 and 1.0 MMCF per day, although a number of the wells are producing over 1.0 MMCF per day. An average of 153 horizontal CBM wells completed in Hartshorne coal have provided initial production that averages 0.418 MMCF per day.
About Lexington Resources, Inc.: Lexington Resources, Inc. is a natural resource exploration company engaged in the acquisition and development of oil and natural gas properties in the United States. Its current operational focus is on gas development initiatives in the Arkoma Basin, Oklahoma. The Company expects to weight its development initiatives towards gas production. For further information: www.lexingtonresources.com
In addition, all current shareholders, and interested parties should sign into the private Corporate Guest Book, corporateguestbook.com to receive timely updates and information on any future developments as they happen.
Contact North America: Marcus Johnson
Phone: Toll Free (888) 848-7377 or (702) 382-5139 Fax (702) 385-1202
Contact Europe: Richard Elliot-Square
Phone: 41.43.888.67.00 Fax, 41.43.888.67.09
Stock Exchange Information: Symbol: OTCBB -- LXRS
Frankfurt/Berlin Symbol -- LXR, WKN: A0BKLP, ISN: US5295611025
SAFE HARBOR STATEMENT
THIS NEWS RELEASE MAY INCLUDE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF SECTION 27A OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE UNITED STATES SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED, WITH RESPECT TO ACHIEVING CORPORATE OBJECTIVES, DEVELOPING ADDITIONAL PROJECT INTERESTS, THE COMPANY'S ANALYSIS OF OPPORTUNITIES IN THE ACQUISITION AND DEVELOPMENT OF VARIOUS PROJECT INTERESTS AND CERTAIN OTHER MATTERS. THESE STATEMENTS ARE MADE UNDER THE "SAFE HARBOR" PROVISIONS OF THE UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND INVOLVE RISKS AND UNCERTAINTIES WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE IN THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN.
SOURCE Lexington Resources, Inc.
North America, Marcus Johnson, +1-888-848-7377, or
+1-702-382-5139, or fax, +1-702-385-1202, or Europe, Richard Elliot-Square,
41-43-888-67-00, or fax, 41-43-888-67-09, both of Lexington Resources, Inc. |
