HOUSTON, Oct. 26, 2016 /PRNewswire/ -- Maverick Drilling & Exploration (ASX: MAD, OTCQX: MRVKY) ("Maverick" or "the Company") announces the signing of two associated agreements that allow for the sale in cash of its Blue Ridge field in Fort Bend County, Texas for a total of $9.1 million. A down payment has been received and, subject to due diligence, the transaction is currently anticipated to close in the next 30 days. All terms and conditions are customary for this type of transaction.
"We are pleased to announce the signing of two agreements to divest of our Blue Ridge interests," said J. Michael Yeager, Maverick Chairman and Chief Executive Officer. "The combination of both of these agreements allows Maverick to completely exit the area, and allows for the redeployment of this capital into our new Eagle Ford acreage."
Maverick's Eagle Ford acreage in Dimmit County is an undrilled position offsetting significant proven production. Acreage being targeted for capture by the end of the year totals between 11,000 and 13,000 acres. This position is in the oil window of the Eagle Ford formation, and is an area where recent technical improvements have greatly increased oil recovery per well and drilling economics.
Maverick is finalizing plans for its initial drilling program to commence in the fourth quarter of 2016 and extend into the first quarter of 2017. "As the sale of Blue Ridge finalizes in the next few days, we are very anxious to devote all of our efforts toward our new Eagle Ford position. We are in one of the thickest parts of the Eagle Ford formation, so the opportunity for multiple levels of development will be tested. We plan to begin initial drilling in the next three months," says Yeager.
About Maverick Drilling & Exploration
Maverick Drilling & Exploration Limited is a Houston based, U.S. onshore focused independent oil company. Existing oil production and reserves development are focused on the drilling of low cost, high margin oil. Maverick's assets are acreage positions with majority ownership over parts of the Blue Ridge field located south of Houston, Texas and undeveloped acreage in the Eagle Ford Basin in South Texas, in the United States. For more information, visit Maverick's website at www.maverickdrilling.com.
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SOURCE Maverick Drilling & Exploration Limited