HOUSTON, TX -- (Marketwire) -- 07/27/10 -- Matrixx Resource Holdings, Inc. (PINKSHEETS: MXXH) announces it has engaged in negotiations to acquire up to a 50% working interest in an 82-acre lease on an oil and gas prospect located in the Wilcox Formation in Live Oak County, Texas.
Matrixx believes that there is a wealth of opportunity in the energy sector today. The identified prospect, an 82-acre lease, is located in the prolific Wilcox Formation. The decision to proceed on this prospect followed a review of significant project data including but not limited to: 3D seismic, financial projections (AFE), well logs, and geologist reports. This project will target natural gas and other liquids. Anticipated depth of the test well is approximately 7,800 feet. Projected well production from the lease is estimated at 60 bbl/D of oil and a total reserve of 6 to 8 Bcf of gas.
Today, fifty percent of natural gas consumed in the U.S. comes from wells drilled within the last three years. Currently, twenty-five to thirty percent of the gas produced comes from wells drilled last year, according to data from the ISH Energy Group. In consideration of these industry and consumer related conditions, the Company expects this prospect to fit within the scope of its forward re-entry plan into the energy sector.
Upon completion of the purchase and execution of the Joint Operating Agreement, Matrixx will furnish additional financial and technical data pertinent on the lease. The Company management and its development partners are enthusiastic on moving forward in this newly formed joint venture.
Safe Harbor Statement: This press release contains forward-looking statements as defined in The Private Securities Litigation Reform Act of 1995 (the 'Act'). In particular, when used in the preceding discussion, the words 'plan,' 'confident that,' 'believe,' 'scheduled,' 'expect,' or 'intend to,' and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties, and actual results may differ materially from those expressed in any forward-looking statement. Such risks and uncertainties include, but are not limited to, the ability of Matrixx to complete the proposed acquisition(s), the results of Matrixx's due diligence review of the candidate(s), the success of the business of the acquisition candidate(s), including the ability of Matrixx to continue to sell the applicable products and the acceptance of those newly designed products by the market, market conditions, the general acceptance of the Company's products and technologies, competitive factors, timing, and other risks described in the Company's SEC reports and filings.