Exterra Energy, understanding that the oil and gas game comes down to production, is pursuing a strategy focused on acquiring undervalued, production-capable assets that can be capitalized given prevailing technologies and market conditions. Today, EENI reported the acquisition of 3.1k acres of new mineral leases in Texas’ Barnett Shale.

The North West corner of the historically proven and currently producing Barnett is the location of the new acreage, which contains 52 extant wells, 44 of which are currently averaging 35 BOPD, thus indicating the site is already good to go.

However, in typical EENI fashion, they have major plans for the site and have already designed a sophisticated plan to yield maximum production:

• The eight wells not in production will be worked over and immediately put online at a projected 5 BOPD output capacity per well, bringing the site a conservatively estimated 72 BOPD, or $114.6k per month cash flow post operations (1.375M annually)

• 10 new wells will be implemented at a total cost of roughly 750k, and are projected (by a third-party engineer) to output some 200 BOPD (25% falloff in year one) total, or $355k per month ($4.26M annually)

An existing $10M LOC with Happy State Bank of EENI’s native Texas for acquiring oil and gas properties will be employed to satisfy workover and drilling cost requirements for production.

CEO of EENI, Todd R. Royal, sagely acknowledged that precisely such acquisitions are the goal of the Company’s growth strategy of “acquiring strong producing assets with solid upside potential that are located in proven, tested reservoirs and continue to increase shareholder value.”

Additional analysis by the independent third-party engineer who has a great deal of experience in the area confirmed the potential for an additional series of 80 wells, and EENI plans to set about implementing this phase of operations contingent upon the success of the aforementioned 10-well program.

Developer EOG previously demonstrated the deep-zone potential as well, and EENI plans to go after this deeper dual completion Barnett Shale after successfully unlocking all of the shallower mineralization zones.

Exterra is buzzing with news of the acquisition, creating a very exciting time for the Company and adding nicely to the previously reported planned acquisition of the Woodbine properties, as both areas are very low risk with massive workover potential.