RE owns 100% interest in an oil producing property located in Southwest Louisiana with development and exploration potential.
In exchange for cash consideration and a net profits interest in the property, BRZL will purchase 100% of the membership interests in RE.
This includes the two producing oil wells making 12-15 barrels per day, one saltwater disposal well, one shut-in well designated for exploration drilling, several pumping units, an oil, gas, and water separation facility.
It further consists of an oil and water pumping facility, an oil and gas storage facility, and five square miles of 3-D Seismic data processed and partially evaluated.
It is anticipated, based on 3-D Seismic data and subsurface geology, and upon completion of a $2m development drilling program, the property’s daily oil production could exceed 100 barrels.
The company said that the property, which has produced over 6 million barrels of oil since its initial discovery well drilled in the 1930’s, has potential for additional oil reserves.
Samuel Weiss, president of BRZL, said: ”Having an asset like this property provides the necessary foundation for BRZL to build upon.
”With positive cash flow from day one and 880 acres of development and exploration acreage to exploit utilizing the 3-D Seismic data, we are very excited to get started and initiate a drilling program to generate significant cash flow and increase shareholder value.”
