TXHG News.....more oil
TX Holdings, Inc. Completes Acquisition of Contract Area #1 Leases in Eastland County, TX; Brings Total Recoverable Reserves to 55 Million Barrels
MIAMI BEACH, Fla., Jul 11, 2006 (BUSINESS WIRE) -- TX Holdings, Inc. (Pink Sheets:TXHG) has acquired a sixty percent (60%) working interest in the oil and gas leases known as Contract Area #1(C/A 1) in Eastland County, Texas, which consists of four leases (the Roy Adams, the W. Isenhower, the Isenhower, and the Isenhower Estate "C").
Contract Area #1 is approximately 247 acres, has 36 wells on the property with estimated reserves of approximately 19,000,000 recoverable barrels. Of those, 7,200,000 barrels are proven developed behind pipe. Twenty eight of the wells are either currently producing or are producible, the others will be used for injection or supply wells. These wells are very good candidates for either recompletion or work-over, keeping in line with the Company's low production development strategy. Combined with the previously announced leases, this is estimated to increase the Company's initial production to approximately 320 to 400 barrels per day. The Company believes the work can be completed by late summer or early fall. Fully developed after 2 years the C/A 1 leases are projected to produce 2,966 BOPD.
A recent reserve report by Cesar Orosco, American Association of Petroleum Geologists, shows that the leases have pay zones in five areas less than 1,000 feet.
Mr. Mark Neuhaus, Chairman and President of TX Holdings, noted: "The acquisition of Contract Area #1 represents a major step forward for the Company as we continue to apply our acquisition strategy and move toward getting all of the wells in production to build our revenue stream. In conjunction with our earlier acquisitions and breaking escrow on our Private Placement Offering, we believe that Contract Area #1 will provide a long-term revenue stream for the Company. We look forward to commencing work on the properties and implementing our planned development program."
As earlier stated, the Company continues to work closely with its auditors to bring its filings up to date and current in all aspects regarding its filings as a fully-reporting public company.
About TX Holdings, Inc.
TX Holdings, Inc. is an emerging oil and gas exploration, development and production company focusing on opportunities in Texas, Louisiana and Oklahoma. TX Holdings is currently exploring a number of additional potential acquisition targets throughout the region.
Safe Harbor Statement
The information provided in this Press Release does not constitute an offer or a solicitation of an offer for the purchase or sale of any shares or other securities of TX Holdings, Inc. There are substantial risks associated with investing in development stage energy exploration companies. No securities commission or similar authority has in any way approved any of the information contained in this press release.
Forward-looking statements: This press release and other statements by TX Holdings, Inc. may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to the outlook for earnings and revenues, other future financial or business performance, strategies and expectations. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "estimate," "position," "assume," "potential," "outlook," "continue," "remain," "maintain," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," or similar expressions.
SOURCE: TX Holdings, Inc.
CONTACT: For TX Holdings, Inc., Miami Beach
Frank Shafer, 586-354-4242
Copyright Business Wire 2006
AI
