The company funded the cash purchase price primarily from its $5m credit facility and the balance from working capital.
This acreage contains four wells, three of which are producing from the San Andres and one recently drilled well from the Grayburg and San Andres formations at an approximate depth of 5,000ft.
These wells are operated by Cone and Petree Oil & Gas Exploration, and Mexco owns working interests of approximately 10.8% (7.77% net revenue interest) in this property.
This property contains an additional 11 potential drill sites in the Grayburg and San Andres formations, with more dense spacing of approximately 10 acres per well.
The Fuhrman-Mascho field currently contains about 2,400 producing wells and cumulative production from the field to date is approximately 122 million barrels of oil and 122 billion cubic feet of gas.
