Exterra Energy, Inc. reported that the company has purchased 3,100 acres of oil and gas leases in Texas that are prospective for the Barnett Shale. The leases are in the area of the Barnett Shale that produces a mix of oil and natural gas.
Exterra Energy, Inc. said that the leases have fifty two completed wells on the property, of which forty four are producing hydrocarbons. The total production of the forty four wells is approximately thirty five barrels of oil per day.
Exterra Energy, Inc. plans to commence work over operations on the eight non-producing wells in order to stimulate production. The company estimates that each well will produce five barrels of oil per day once the work over operations are complete.
Exterra Energy, Inc. also has plans to drill ten new wells on the acquired properties at a total cost of $750,000. Each well in the new drill program is expected to produce twenty barrels of oil per day during the first year, and then decline at a rate of 25% the first year.
Exterra Energy, Inc. is looking to acquire other oil and gas properties in its area, and has arranged a $10 million letter of credit with the Happy State Bank of Texas to help facilitate future purchases.
For more information on the company, go to www.exterraenergyinc.com