Paxton Energy, Inc. announced the purchase of oil and gas properties in Texas from DEEJ Consulting LLC for $700,000 in cash and stock. Purchased is in Concho and Menard County, the acreage is said to add $50,000 in cash flow to the company on an annual basis.
Charles Volk, the CEO of Paxton Energy, Inc., said, “The immediate and near-term prospects for these wells will allow Paxton to fund its operations in 2010. This acquisition will also position Paxton as an established, viable, independent developer of oil & gas properties.”
Paxton Energy, Inc. paid $600,000 in cash and $100,000 in stock to DEEJ Consulting LLC for the assets. The company said that the PV-10 value of the reserves on the properties was $2.2 million, assuming an oil price of $69 per barrel and a discount rate of 10%.
Paxton Energy, Inc. currently owns oil and gas assets in the Cooke Ranch project located in La Salle and Jefferson County, Texas. The company’s working interests in the wells here range from 3.97% to 31.75%, and the wells produce approximately 180 barrels of oil and 440,000 cubic feet of natural gas per month.
Paxton Energy, Inc. is headquartered in Carson City, Nevada.