TX Holdings Acquires Exclusive Option on 14.5M Barrel Reserve
Friday February 10, 8:37 am ET
MIAMI--(BUSINESS WIRE)--Feb. 10, 2006--TX Holdings, Inc. (Pink Sheets:TXHG - News); the "Company") is pleased to announce it has purchased an exclusive option to buy the "Williams" leases situated in Callahan County, Texas. This option encompasses 843 acres of proven producing oil and gas leases, with estimated reserves of 14,500,000 barrels of oil with projected recovery rates of 40-50%. When these wells were first drilled, production was in excess of 10,000 barrels per month.
Of the entire lease approximately 343 acres have been developed to production, the remainder (500 acres) has yet to be fully developed and holds exciting potential for increased production and development. Production comes from the Fry, Tannehill and Bluff Creek formations, with the leases currently supporting 28 shallow wells (depths of less than 500 feet) and 5 deep wells (depth of 1800-4000 feet)
TX Holdings has contracted with top geological and reserve engineering specialists in order to validate the reserves as documented by a study conducted by the U.S. Department of Commerce and also in a supplemental reserve report conducted by Masada Oil and Gas. This due diligence is to ensure that all the title work, reserve estimates and geological data are as represented by the seller.
TX Holdings is very excited about the potential of this acquisition and anticipates closing on this property within 30 days subject to the timeliness of the engineering studies as well as the accuracy of the stated reserve reports. Upon finalizing the acquisition the company feels a comprehensive rework, re-completion and re-pressurization program on the lease will yield a very profitable long term acquisition for the company.
The information provided in this Press Release does not constitute an offer or a solicitation of an offer for the purchase or sale of any shares or other securities of TX Holdings, Inc. There are substantial risks associated with investing in development stage energy exploration companies. No securities commission or similar authority has in any way approved any of the information contained in this press release.
Contact:
TX Holdings
Mark Neuhaus, 305-420-6781
www.txholdings.net
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