|By Marketwired .||
|August 19, 2014 09:30 AM EDT|
FRISCO, TX -- (Marketwired) -- 08/19/14 -- West Texas Resources, Inc. (OTCQB: WTXR), a Texas-based independent oil and gas company, today announced the acquisition of a 50% working interest in an oil and gas prospect located in the Palo Duro Basin in Hale County, Texas.
Hale County, Texas Interest
In June and July 2014, the Company acquired non-operating leases covering approximately 1,070 gross mineral acres leases in the Palo Duro Basin. The leases have a primary term of five years with a Company option to extend the term for another five years. The leased properties are oil and gas prospects in the Atoka Shale and Wolfcamp Shale, for which West Texas Resource holds a 50% working interest and a 40% net revenue interest, with Total Energy Partners, of Tulsa, Oklahoma. The leased properties are subject to a 20% royalty held by the owners and a third party. West Texas Resources is currently evaluating its options for the exploitation of the leased properties, including the Company's sale of the leases or its farm-out of the leases to an oil and gas operator.
According to Stephen Jones, CEO of West Texas Resources, "The Palo Duro Basin is believed to be the next big shale play in the United States and we are very excited to be a part of this development.
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 Company's interest in the Palo Duro basin field. 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 risk that the Palo Duro basin field may not be as productive as currently believed, the risk that the Company's leased properties in the Palo Duro basin field may not include oil and gas reserves that can be exploited on commercially reasonable terms, 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.
West Texas Resources, Inc.