25th May 2007 08:00
TomCo Energy PLC25 May 2007 TomCo Energy Plc ("TomCo" or "the Company") Acquisition of Interest in Two Oil Leases in South Eastern Texas TomCo today announces that it has acquired a 50 per cent. working interest inthe Abel and Saratoga leases in South Eastern Texas. The two leases, which areapproximately 15 miles apart, were acquired in a private sale for a total cashconsideration of US$972,000. The Abel lease, located in Hardin County, Texas, consists of approximately 100acres on a salt dome structure and is historically one of the most prolific oilplays in South Eastern Texas. There are currently three wells producing on thelease at an aggregate rate of approximately 15 barrels per day. The Company andits joint venture partner, Mark III Energy ("Mark III") of Lubbock, Texas, planto drill another ten wells on the Abel lease over the next two years. Thepartners hold 50 per cent. working interest each, and an 82 per cent. netrevenue interest after landowner royalties. Based upon historical results, thenew wells are considered Proved Undeveloped locations with low risk, and initialproduction rates of 20 barrels per day per well are anticipated. The Saratoga lease, located in Liberty County, Texas, comprises approximately 80acres and is also on a salt dome structure. TomCo and Mark III hold 50 per cent.working interest each, and have a 97 per cent. net revenue interest. There arecurrently six wells producing on the lease producing an aggregate 20 barrels ofoil daily. TomCo and Mark III plan to drill another seven wells on ProvedUndeveloped locations on the Saratoga lease over the next two years. Mark III will operate all of the wells on both leases through its operatingsubsidiary, BHB Operating Company. The Company is currently assessing the oilReserves attributable to these leases, and will make an announcement in duecourse. Howard Crosby, CEO of TomCo commented: "The acquisitions of these leases arefurther examples of our unfolding strategy and come through our contacts builtup during our tenure at another US listed oil exploration and productioncompany. We are looking at a large number of opportunities and we look forwardto further announcements in the near term." For more information contact: TomCo Energy Plc Tel: 07802 451 212Stephen Komlosy Strand Partners Limited Tel: (020) 7409 3494Simon RaggettWarren PearceThomas Lockyer Bankside Consultants Tel: (020) 7367 8888Simon RothschildLouise Mason The information in this release has been reviewed by Nicholas Wright, who is aqualified person for the purposes of the AIM Guidance Note for Mining, Oil andGas Companies. Mr. Wright is a Director of Greensand Associated Limited and is aqualified petroleum geologist with over 30 years experience in oil and gasexploration and production. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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