Source: Yahoo! Finance: biz.yahoo.com
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Wednesday July 15, 10:00 am Eastern Time
Company Press Release
SOURCE: ARXA International Energy, Inc
ARXA International Energy, Inc. Announces Property Acquisition
HOUSTON, July 15 /PRNewswire/ -- ARXA International Energy, Inc. (OTC Bulletin Board: ARXA - news) announced today acquisition of a 100% working interest in the Lewis Ranch and London Gin interests located in Matagorda and Nueces Counties, Texas, from Cohiba Natural Gas, an affiliate of OPMI Operating Company/Todd C. Harwell.
Craig Ford, President and CEO of ARXA, stated that ''Existing production from the London Gin, C. N. Cook #4 well will add approximately $2,600 per month in net cash flow, while the J. C. Lewis #5 in Lewis Ranch is expected to initially contribute another $9,000 per month and the Lewis #4, after an estimated $10,000 in workover costs, should initially contribute another $7,000 per month''. Mr. Ford went on to explain that ''The Lewis Ranch interest has upside development potential of in excess of 1 billion cubic feet of gas which can be exploited through existing well bores. At current prices a Bcf of gas should generate $2.4 million in gross cash flow.''
Mr. Ford concluded by stating that ''London Gin and Lewis Ranch are the sort of opportunities which ARXA created by painstakingly building our deal source network and then positioning ourselves with the financial resources to immediately capitalize when the opportunity appears. The London Gin and Lewis Ranch interests were acquired for stock and cash and at a price based on their producing reserve value only. This pricing scenario leaves the bulk of the value in the upside potential which effectively has a ''zero'' cost to ARXA beyond direct development costs which will be minimal because exploitation will primarily be through existing well bores.''
ARXA International Energy, Inc. is a fully reporting public company engaged in oil and gas reserve acquisition and development in the US.
The private Securities Litigation Reform Act of 1995 provides a ''safe harbor'' for forward looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by ARXA) contains statements that are forward-looking, such as statements relating to the future anticipated direction of the energy industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth and potential contracts. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and, accordingly, such result may differ from those expressed in any forward-looking statements made by or on behalf of ARXA. These risks and uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing management, financing activities, domestic and global economic conditions, changes in federal or state tax laws, and market competition factors.
SOURCE: ARXA International Energy, Inc
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