Lexington Resources Acquires Coal Creek Gas Prospect in Arkoma Basin, Oklahoma LAS VEGAS, Apr 28, 2004 /PRNewswire-FirstCall via COMTEX/ -- Lexington Resources, Inc. (OTC Bulletin Board: LXRS) (the "Company"), further to its March 10 news release, announces that it has closed the purchase of the a lease of 1,536 acres of the Coal Creek CBM Gas Prospect ("Coal Bed Methane") located in Hughes and Pittsburg Counties, in the State of Oklahoma. Further lands under negotiation that form part of the same prospect may also be acquired. The Company has paid a total of $422,500 pursuant to the Coal Creek Lease Purchase Agreement. The prospect's area of mutual interest ("AMI") is comprised of approximately 10,240 gross acres. The Company's drilling rights on the acquired acreage relate to all possible producing zones including the Hartshorne coal at approximately 3,500 to 4,000 feet and all higher zones. The Hartshorne coal is the primary producing reservoir coal ranked in the medium to high volatile bituminous category known for CBM production. The Company plans for drilling of further horizontal wells into the coal seams located on the prospect. This is the Company's third land acquisition since changing its primary business operations to oil and gas development late last year, and brings drillable gas target inventory to approximately 3,872 acres in the State of Oklahoma.
As previously announced, an offsetting CBM well drilled recently in proximity to the AMI is currently producing approximately 400 MCF/gas per day. There is a second offset CBM gas well in proximity to the AMI that has been drilled and completed since the Company's March 10 news release that introduced the Coal Creek Gas Prospect option to purchase.
About Domestic Coal Bed Methane Gas Production: Methane (natural gas), occurs in association with coal, the Nation's most abundant fossil fuel resource. Conservative estimates (Rice, 1997) suggest that in the United States more than 700 trillion cubic feet (TCF) of coal-bed methane exists in place, with perhaps 100 TCF economically recoverable with existing technology. Coal bed methane now accounts for about 7.5 percent of total natural gas production in the United States. Exploration costs for coal-bed methane are typically low, and the wells are cost-effective to drill. (Source: USGS website: http://energy.usgs.gov )
About Lexington Resources, Inc.: Lexington Resources, Inc. is a natural resource exploration company engaged in the acquisition and development of oil and natural gas properties in the United States. Its current operational focus is on gas development initiatives in the Arkoma Basin, Oklahoma. The Company expects to weight its development initiatives towards gas production.
For further information: www.lexingtonresources.com
Stock Exchange Information: Symbol: OTCBB - LXRS Berlin Symbol - LXR, WKN: A0BKLP, ISN: US5295611025 SAFE HARBOR STATEMENT
THIS NEWS RELEASE MAY INCLUDE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF SECTION 27A OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE UNITED STATES SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED, WITH RESPECT TO ACHIEVING CORPORATE OBJECTIVES, DEVELOPING ADDITIONAL PROJECT INTERESTS, THE COMPANY'S ANALYSIS OF OPPORTUNITIES IN THE ACQUISITION AND DEVELOPMENT OF VARIOUS PROJECT INTERESTS AND CERTAIN OTHER MATTERS. THESE STATEMENTS ARE MADE UNDER THE "SAFE HARBOR" PROVISIONS OF THE UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND INVOLVE RISKS AND UNCERTAINTIES WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE IN THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN."
SOURCE Lexington Resources, Inc.
North America: Marcus Johnson, 1-888-848-7377, or +1-702-382-5139, or fax, +1-702-385-1202, or Europe: Richard Elliot-Square, 41-43-888-67-00, or fax, 41-43-888-67-09, both of Lexington Resources, Inc. http://www.lexingtonresources.com
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