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BNPD NEW$ Texas Oil and Minerals (BNPD) Enters Into a Letter of Intent to Purchase a 25% Working Interest in the Highly Productive Damon F
Date : 06/01/2011 @ 12:44PM
Source : PR Newswire
Stock : Bionic Products (PL) (BNPD)
Quote : 0.03 -0.0005 (-1.64%) @ 12:45PM


Texas Oil and Minerals (BNPD) Enters Into a Letter of Intent to Purchase a 25% Working Interest in the Highly Productive Damon F

Bionic Products (PL) (USOTC:BNPD)
Intraday Stock Chart
Today : Wednesday 1 June 2011
Texas Oil and Minerals, Inc. (OTCMARKETS: BNPD) announced today that it has entered into a Letter of Intent to purchase a working interest the South East Texas Salt Dome. Under the terms of the agreement and pursuant to future definitive agreements, Texas Oil and Minerals will acquire a 25% working interest in the Bryan Estate which is part of the Damon Mound Field located in Brazoria County, Texas.

The initial production from the first two wells when they were returned to production last year was 12 barrels of oil per day without cleanouts or treatment. We feel with that removing the paraffin buildup and the cleaning out of the sand screens will increase the production from all four wells to between 20-32 barrels per day.

The Bryan Estate property presently contains 4 wells all of which are expected to be worked-over and cleaned out and brought online over the next 1 to 2 months.

Our consulting geologist Hal Basham will be researching and re-working the existing information on this field to determine if there is still a viable location to be drilled on this lease. This might also require us to purchase some existing seismic should it be available.

The drilling of a new well to the depth of 3,200 would give us an opportunity to look at the 4 different pay zones in this field at a cost around $350,000. Initial production would be around 50 barrels of oil per day giving us a payout in approximately four months with a positive cash flow of $18-20,000 per month to Texas Oil and Minerals interest. The Damon Mound is a Salt Dome so the existing field rules allow us to drill on one acre spacing for any new location.

Tom Gouger, CEO of Texas Oil and Minerals, stated, "Our agreement marks our entry into building a sustainable portfolio of oil producing properties. The Brazoria County property is already a highly productive area and has the potential to be further exploited to increase shareholder value in the near future and long-term."

The final contract is in its final days due diligence period and is anticipated to be finalized June 1st or soon thereafter. The negotiated total purchase price for the 25% working interest in the properties requires a US $50,000 down payment to be paid following execution of the definitive agreements.

About Texas Oil and Minerals (BNPD)

Texas Oil and Minerals creates value by acquiring and exploiting reserves in fields specifically targeted for oil and high-rate return North American clean burning natural gas. We are involved in prospects that range in value from $1,000,000 to $50,000,000, which include seismic and land projects, drilling prospects and the purchase of producing properties. Our team is comprised of highly skilled industry professionals who leverage their knowledge toward the success of our business. With more than three generations of collective experience, this team of professional and talented production personnel can provide innovative exploration and development solutions focused on creating exceptional returns in oil and gas through acquisition and exploration. www.stocklogiq.com/texasoil