Delta International Oil & Gas (Delta) announced that it has closed its first investment in Landmaster Partners (Landmaster Partners), a Texas-focused oil exploration and production company for almost 20 years.
The investment was done in the form of an 18-month Note with a 9 % interest and a carried interest in the first two wells.
This note is intended to fund the first two re-entry wells that Landmaster has proposed to drill in a Haskell County, Texasproperty. Landmaster has already started working on the first well and is expecting to commence drilling in mid-August. The first well will target two formations between 1,800 and 2,300 feet that have produced in the property directly to the South. Landmaster is expecting the bottom reservoir to produce a total of approximately 50,000 barrels of oil from the bottom formation of the first well, with the entire property having probable reserves of approximately 880,000 barrels of oil.
"The execution of our energy acquisition strategy is moving quickly, with Landmaster being the second investment closed in a matter of months," stated Santiago Peralta, CEO of Delta. "Second Chance Oil is already drilling in California, and there is a third possible acquisition in the pipeline, which means we could be looking at a very different Delta by the end of the year."