NEWS RELEASE TODAY:
Isramco, Inc. Reports New Acquisition of U.S. Oil and Gas Interests
NEW YORK, Feb. 18 /PRNewswire/ -- Isramco Inc reported today that Jay Petroleum LLC, in which it owns an 82.9% membership interest, has
acquired varying operated and non-operated interests in oil and gas wells in Louisiana, Texas and Wyoming. The acquisition, for $3.1 million, was made
with mostly bank financing through Jay Petroleum LLC's $10 million credit facility with Comerica Bank - Texas, Houston.
As part of Isramco's agreement, announced Wednesday, February 5, to acquire membership interest in Jay Petroleum LLC, Isramco, Inc. made a
$132,640 capital contribution to Jay Petroleum LLC to satisfy Comerica Bank - Texas' lending requirements concerning the use of the $10 million credit
facility. Isramco, Inc. is not a named borrower or guarantor under the credit facility.
The newly acquired reserves based on outside reserve engineering reports consist of approximately: 160,000 net barrels of proven developed producing
oil reserves; 2.8 billion cubic feet of proven developed producing gas reserves; 11,000 net barrels of proven non-producing oil reserves and 1.1 billion
net cubic feet of proven non-producing gas reserves.
After completing this acquisition Jay Petroleum LLC will have based on outside reserve engineering reports average net daily production of approximately
130 barrels of oil per day (BOD) and 1,800 thousand cubic feet of gas per day (MCFD). Through the development of proven behind pipe and proven
undeveloped reserves which Jay Petroleum LLC has in its possession, net daily production could potentially increase to approximately 200 BOD and
2,400 MCFD of gas. SOURCE Isramco, Inc. |
