G2X Energy To Joint Venture With WPX Energy To Develop Colorado Trail Ridge Properties
HOUSTON, Aug. 26, 2014 /PRNewswire/ -- G2X Energy, through their subsidiary TRDC LLC, announced today an agreement with Tulsa based WPX Energy (NYSE: WPX) to jointly develop WPX's Trail Ridge Properties located in western Colorado's Piceance Basin Highlands. "We are extremely pleased to be partnering with WPX Energy in the Piceance Basin. WPX has a proven track record for predictable and cost efficient natural gas production in the region and will be an excellent partner for G2X. We look forward to many years of successful development together," stated Mr. Tim Vail, President and CEO of G2X Energy, who went on to say, "We see this transaction as a creative way to secure reliable, low cost natural gas feedstock for our methanol and gasoline plants under construction and in development."
WPX, who will remain as operator, is receiving approximately $40MM in cash for 49 percent of its working interest in approximately 100 proved developed producing Trail Ridge wells. These wells represent approximately 26 billion cubic feet equivalent of proved developed producing reserves. The drilling program has 1,300 remaining drilling locations. The parties plan to jointly develop 8 wells this year; 25 wells in 2015; 50 wells in 2016 and 100 wells per year in 2017 and beyond. The joint development agreement is for the Williams Fork and Iles formations only. G2X estimates that the drilling program will include 230 billion cubic feet equivalent of net proved undeveloped reserves and an additional 620 billion cubic feet equivalent of net probable reserves.
In connection with the drilling program, G2X has also committed to a $170 million drilling carry on nearly 400 future wells. WPX will pay 28 percent of the Trail Ridge development and receive 51 percent of the production and reserves until G2X has completed its drilling carry funding commitment.
For more information regarding G2X Energy, please contact Sandy Fitch at (713)943-2200 or info@G2Xenergy.com. For interview opportunities, please contact Kathryn Smith at (713)252-5414 or (713)627-8777.
About G2X Energy, Inc.
Houston-based G2X Energy develops, owns and operates production facilities that convert natural gas to methanol and drop-in automotive gasoline. Transforming gasoline production by leveraging existing infrastructure and proven conversion technologies, G2X meets the demand for low cost fuels and chemicals using abundant, clean, domestic natural gas.
For more information visit www.G2XEnergy.com or call (713) 943-2200.
SOURCE G2X Energy, Inc.