Multi-Corp International Purchases From Quad Energy 100% W.I. of 2,800 Acres in Eddy County, New Mexico
LOS ANGELES, Dec. 17, 2012 /PRNewswire/ -- Multi-Corp International Inc. (OTCQB: MULI) ("Multi-Corp" or the "Company"), an emerging Exploration and Production Company that is actively acquiring and developing oil and gas assets in North America, is pleased to announce today, that the Company has purchased from Quad Energy, Inc. a 100% Working Interest in the 2,800 acre Cave Pool Property in Eddy County, New Mexico. There are currently 32 wells which are capable of producing approximately 40 BOPD with 30 MCF Natural Gas, based on 40 acre spacing and over 100 possible drilling locations based upon 20 acre spacing. Management has currently identified 10 wells that are currently shut-in that will be returned to producing status within the first sixty days of operation. Production should increase by a minimum of 20 BOPD once the 10 wells are placed on production. Payment for the 100% W.I. was made by the Company issuing 10 million of its common shares to Quad Energy. The Company is expecting to begin its drilling program in early March 2013.
Company President Robert Baker states, "We are excited to have acquired a substantial property that will bring short term value to the Company in the form of revenue starting within 90 days of the closing of this agreement and a long term potential to drill up to 100 new wells on the existing 2,800 acres. The Company has accomplished this without taking on any debt and has issued 10 million common shares in payment to Quad Energy to conclude the transaction."
The Cave Pool Unit property covers 2800 acres located within Eddy County, NM. It is located within the prolific Artesia Vacuum Trend – more specifically within the Grayburg Jackson Pool. The Artesia Vacuum Trend play contains thirteen reservoirs with more than 1 MMBO cumulative production. Cumulative production from these 13 reservoirs was 796 MMBO as of 2000. Depths to the top of reservoirs range from 1290 to 4700 ft. This is a mature play, especially within the highly productive San Andres carbonates. Recent development of lower permeability Grayburg sandstones in the Grayburg Jackson reservoir during the mid-1990's has been successful to the point of reversing production decline and is a major focus of current and future development.
Oil PUD reserves of 3M BOE are based on third party reserves on adjoining offset leases (Doral – with 3 leases bordering Cave Pool on SE border) in the Grayburg only. The Cave Pool Unit produces from both the Grayburg and San Andreas formations and therefore credit for reserves on the San Andreas formation are not included.
About Multi-Corp International, Inc. (OTCQB: MULI)
Multi-Corp International is an Exploration and Production (E&P) company focused on delivering superior operating and financial results by developing and acquiring oil and gas resources initially in New Mexico and then throughout North America, that are contributing to the country's energy security and vital to the world's health and welfare. The Company operates from its offices in Los Angeles, California.
Information on the company regarding current filings can be found at: http://www.otcmarkets.com/stock/MULI/quote
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of our exploration program at our properties and any anticipated future production. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with petroleum exploration and development stage exploration companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the most recent fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
ON BEHALF OF THE BOARD
Multi-Corp International, Inc.
President & C.E.O.
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SOURCE Multi-Corp International Inc.