US based Paxton Energy has signed an agreement to form a limited liability company that will purchase a majority working interest in the Quinta wells, a property located in Brown County, Texas.
The company entered into an agreement with Lighthouse Petroleum, a Delaware corporation, pursuant to which the parties will be forming PaxTex LLC, a Nevada limited liability company.
As per the agreement, PaxTex, LLC will acquire from Lighthouse Petroleum Inc a majority interest in the leased oil & gas wells, working interests and equipment relating to three wells, commonly known as the Quinta Wells.
The property contains three wells, two of which are currently in active production, with the third to be converted to a salt water disposal well.
Based on internal engineering reports, the wells contain reserves valued at $2.2m at PV-10 (present value at a discount rate of 10%).
These wells require a rework program, after which production rates are forecast at 40 barrels of oil per day producing an annual running rate exceeding $750,000.