CISCO, Texas, November 17, 2016 /PRNewswire/ --
Northern Minerals & Exploration Ltd. (OTCQB: NMEX) ("Northern" or "NMEX")) is pleased to provide an update on its current oil and gas activities. Vice President, Ivan Webb, reports "we are moving forward with our plan to build cash flow from oil and gas in Central, Texas with re-establishing production on the Richey lease, the successful addition of two oil and gas leases and the successful farm-out for the establishment of additional oil and gas production from our leases". "Further the Company's new acquisitions are in areas known for large recoverable reserves of oil and gas with low production costs which provides an excellent model for building revenues".
The following provides more information on NMEX properties:
J.E. Richey Lease - Coleman County, Texas: The Concho Richey #1 was re-completed in July 2015 in the Gray formation coming in with an initial rate of production of 65 barrels of oil and 100 MCF of gas per day. This well is a direct offset to a well that has produced more than 69,000 barrels of oil and 180 million cubic feet of gas. Complications occurred earlier this summer with a casing leak in the well that caused production to cease. Successful repairs to the casing have been completed and the well is now back in production. Additional work is planned for the other two wells on the lease. NMEX owns a 25% working interest in the three wells on the lease. There are at least 4 additional drill locations for further development of the lease.
Olson Lease - Jones County, Texas: There is a large structural reef buildup across the acreage that has close similarities to the nearby Strand Oil Field. The Strand Oil Field is a Palo Pinto Reef Field that consists of 8 wells that have produced a total of 1,700,000 barrels of oil. NMEX holds a 100% of the working interest in this 160 acre Olson Lease. NMEX has identified a minimum of 8 drill locations on the lease.
Guy Ranch Lease, Shackelford County, Texas: The principal target formations on this 450 acre lease are the Morris and Patio Formations. The Morris Formation is known for high yield of cumulative gas production ranging from 700 Million cubic feet of gas to 1.4 Billion cubic feet of natural gas. A well in the Patio Formation came in with initial production of 140 barrels of oil and 56 MCF of gas on the Guy Ranch Lease.
Northern has farmed out a 20 acre tract out of the 450 acre Guy Ranch lease. This 20 acre tract has a cased well with the Morris Formation present (30' thick section) with similar characteristics as notable high yield productive Morris wells in the area. NMEX retained a 15% carried working interest in the re-completion of this well in the Morris Formation and retained a 100% working interest in the offset acreage consisting of 430 acres. Geological mapping is currently underway to prioritize drilling locations for both the Patio and Morris Formations on the lease.
Northern continues to evaluate additional low risk oil and gas opportunities for acquisition and development in Central Texas.to take advantage of the current oil price. It is our strong belief that low oil prices will not last with the present low in oil and gas exploration.
At present we are currently in discussions to acquire an interest in a 30 well production project, covering a total of 2,300 acre. This project also has at least 25 additional undrilled locations.
NMEX looks forward to providing its shareholders with further updates with developments on its current projects as well as any other oil and gas projects we acquire an interest in.
About Northern Minerals & Exploration Ltd. (NMEX)
Northern Minerals & Exploration Ltd. is a natural resource company focused building cash flow from oil and gas production in central Texas.
Attention is directed to the Company's website for additional information about each of the above properties.
Forward Looking Statements: Statements which are not historical facts contained in this release are forward looking statements that involve risks and uncertainties, including but not limited to, the effect of economic conditions, the impact of competition, the results of financing efforts, changes in consumers' preferences and trends. The words "estimate," "possible," "seeking," and similar expressions identify forward-looking statements, which speak only to the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, because of new information, future events, or otherwise. Future events and actual results may differ materially from those set forth herein, contemplated by, or underlying the forward looking statements.The information herein is subject to change without notice. Northern Minerals & Exploration Ltd. shall not be liable for technical or editorial errors or omissions contained herein.
Contact: Northern Minerals & Exploration Ltd.
SOURCE Northern Minerals & Exploration Ltd