Lightning, Here's some news from Canada Stockwatch
3,333,333 unit private placement; oil and gas activities
Texas T Resources Inc TXT
Shares issued 6,667,520 Dec 5 close $0.20
Mon 8 Dec 97 News Release
Mr J.F. Marsh reports
The private placement reported in Stockwatch September 11 1997 was not
filed with the regulatory authorities and has been withdrawn.
Effective Friday, December 5 1997 the company has negotiated a private
placement with three placees. The placement will consist of 3,333,333 units
at $0.15, each unit consisting of one share and a two year warrant
exercisable at $0.15 in year one and at $0.17 in year two. Proceeds from
the placements totalling $500,000 will be used to reduce outstanding debt.
The company has existing debt of approximately US$450,000 to Bataa Oil for
the acquisition of the Spindle Wattenberg field. The assets of the Spindle
Wattenberg are pledged to the Norwest Bank as security for the loan. To
date, all net revenues have been paid to reduce debt. It is the intent of
the company to negotiate directly with the bank to obtain an operating line
for the company using the Spindle Wattenberg field as collateral. Should
the company be successful in its negotiations the result would be to repay
Bataa Oil and reduce payments to allow the company to dedicate a portion of
the revenues from the Spindle Wattenberg field to pay overhead and to
source other oil and gas opportunities in the US.
Oil and Gas Operations
Spindle Wattenberg
With the purchase of a 20% interest in the Spindle Wattenberg field, the
company established a strong partnership with Bataa Oil of Colorado. The
field has a total of 144 producing oil and gas wells. Gross revenues from
the Spindle Wattenberg have totalled approximately US$830,000 over the past
12 months with net revenues averaging US$31,000 per month after payment of
all royalties and taxes. The revenues from the Spindle Wattenberg have all
been dedicated to reduce debt with the result that the company has reduced
its debt since the date of the acquisition by approximately US$400,000. A
substantial portion of the gross revenues was expended on work overs of
certain of the j-sand wells to increase production. This program will
continue into summer of 1998.
Kejr 23-11 and 24-11
The company drilled a total of three wells on the Kejr leases in 1997 with
two wells completed and one dry hole. Net revenues from the Kejr 23-11
average approximately US$2000 per month and the company will achieve
payback of drilling costs in approximately 10 months. The Kejr 24-11 well
has had limited production to date which has been stockpiled by the
operator for future sales.
Workman Field
The Workman leases were acquired in early 1996 from Dynamic Oil & Gas. The
company holds a 9% interest in the Workman field, which consists of four
operating wells and a gas plant. Production problems have been continuing
which has disrupted revenues. The company is seeking a purchaser for the
interests with a view to using the sale proceeds to source the other more
productive opportunities.
Recent Drilling
Drilling on the Rose Creek and Hell's Canyon leases was undertaken during
1997. These two leases were wildcat prospects and were not successful. The
company will not undertake any further wildcat exploration in 1998 until it
has successfully drilled some development prospects.
New Acquisitions
The strategy of the company is to continue with oil and gas acquisitions of
merit in both the US and Canada. The company will accomplish this objective
by selective choices of properties with development drilling potential or
the acquisition of producing properties which offer the opportunity of
increasing reserves by further exploration. With this focus in mind the
company is concluding negotiations to acquire a 100% interest in a
development drilling prospect in Alberta. The company would take on the
operation of the drilling and production of this oil and gas lease if
successful in its bid. Mr Norm Clark, a director of the company, will take
responsibility for the operations. This property would qualify for Canadian
flow through and the company would look to finance the drilling of the
prospect with flow through financing. The company will update on the
property as negotiations proceed.
Mineral Division
The company had previously announced the expected completion of an
engineer's report on the property in Chihuahua, Mexico under a joint
venture with Visionary Mining. The report is expected during January 1998.
The company will maintain its interests in Belize and will continue towards
completion of its joint venture in Mexico, but does not expect to undertake
any extensive exploration programs or development of the properties until
market conditions dictate same.
(c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com
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