|By Marketwired .||
|April 17, 2014 11:30 AM EDT||
FRISCO, TX -- (Marketwired) -- 04/17/14 -- West Texas Resources, Inc. (OTCQB: WTXR), a Texas-based independent oil and gas company, today announced its sale of 44.1% of its working interest in the Port Hudson field to EnTek Partners, LLC for total consideration of $290,000. In August 2013, West Texas acquired a 7.24625% working interest (5.65158% net revenue interest) in the oil and gas leases, wells and attendant production in the Port Hudson field, Baton Rouge Parish, Louisiana, for total consideration of $702,900. Pursuant to its agreement with EnTek Partners, West Texas sold to EnTek an undivided 3.1956% of 8/8ths working interest (2.4926% net revenue interest) out of the working interests in the Port Hudson field owned by West Texas. After giving effect to the sale, West Texas continues to hold a 4.0506% working interest (3.1595% net revenue interest) in the Port Hudson field, which has estimated remaining recoverable reserves of 444,477 bbls (gross), and 14,043 bbls (net to West Texas) as of January 1, 2014.
Pursuant to the same agreement, EnTek Partners has also agreed to provide to West Texas up to $275,000 in non-recourse financing to pay for West Texas' share of a dual recompletion in the D-1 well at its West Cam 225 property in exchange for West Texas's agreement to provide EnTek Partners with 75% of the net profits derived by West Texas from the West Cam 225 property until such time as EnTek Partners has recouped 100% of the recompletion costs advanced on behalf of West Texas and 50% of the net profits thereafter.
According to Stephen Jones, President of West Texas Resources, "We are very pleased with our agreement with EnTek Partners. The $290,000 we received for the sale of the partial interest in the Port Hudson field, plus the production payments from the Port Hudson field we have received to date, exceeds our total investment in the Port Hudson field, and we still retain a 4.0506% working interest (3.1595% net revenue interest) in the project. We are also pleased with our ability to leverage our profit participation in the West Cam 225 field in order to finance our share of the recompletion costs on a risk free basis. We look forward to engaging in additional creative financing transactions of this nature in the future."
About West Texas Resources, Inc:
West Texas Resources, Inc. is a Nevada corporation engaged in the business of oil and gas exploration and development in North America. The Company's objective is to become an independent energy company engaged in the acquisition, development and exploitation of oil and gas properties in North America in partnership with oil and gas producers. West Texas pursues strategic acquisitions of interests in oil and gas properties, including prospects with proven and unproven reserves, which it believes to have development potential. The Company targets both new and existing fields and producing wells to be revitalized.
This press release contains forward-looking statements concerning West Texas Resources, Inc. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those forward-looking statements include statements regarding our expectations for the potential profitability of our interests in the Port Hudson field and West Cam 225 and our ability to engage in future financing transactions. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, the risks that the Port Hudson field may not maintain its present level of production, the recompletion activities at the West Cam 225 field may be unsuccessful, we may be unable to acquire additional financing as and when needed and those other risks set forth in West Texas Resources' annual report on Form 10-K for the fiscal year ended September 30, 2013 filed with the SEC on January 14, 2014 and subsequently filed quarterly reports on Form 10-Q. West Texas Resources, Inc. cautions readers not to place undue reliance on any forward-looking statements. West Texas Resources, Inc. does not undertake, and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.
West Texas Resources, Inc.