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Maverick Energy Group, Ltd Announces Commencement of Workover Program
Maverick Energy Group, Ltd Announces Commencement of Workover Program.
About this update from Maverick Energy Group, Ltd.
[{"type":"text","content":"Oct 12, 2006\tMaverick Energy Group, Ltd (MKGP.PK) (Maverick) a member of Z2, LLC is pleased to announce the commencement of a 22 well workover program for Z2, LLC (Z2). The 22 workovers, as well as the drilling of 6 PUDs are part of the initial operations planned by Z2 with funding from the $40,000,000 Advancing Credit Facility which Z2 closed with Gasrock Capital, LLC the latter part of August, 2006.\r\n\r\n\tThe first three workovers were completed and the preliminary results indicate an increase of 4 barrels per day per well. If all 22 workovers produce at the expected increase in barrels per day, the overall production in the field could increase by in excess of 20%. \r\n \r\n\tMaverick is the Operator of the field and owns an 11.5% member interest in Z2, the owner of the Big Foot Field.\r\n\t Maverick owns an 11.517% membership interest in Z2 and currently holds an option to acquire an additional 13.184% membership interest in Z2. If it were to exercise this option, Maverick's membership interest in Z2 would increase to approximately 24.7%. Maverick's option exercise price is $750,000 and may be exercised at any time through January 17th, 2007.\r\n\r\nMaverick Energy Group LTD is the operator of the \"Big Foot Field\" in West Texas originally developed by Royal Dutch Shell (RDS-A) and recently valued at approximately $19 million. It has approximately 300 wells in the field of which approximately 240 are presently revenue producing. Maverick is also the proprietary owner and operator of several producing natural gas fields and owns additional natural gas leases in West Virginia. The President of Maverick also serves as the Chief Financial Officer of Z2, LLC.\r\n\r\nFurther information can be found at http://www.maverickenergygroup.com/\r\nor www.pinksheets.com\r\n\r\n\r\nThis release includes forward-looking statements, which are based on certain assumptions and reflects management's current expectations. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of these factors include: general global economic conditions; general industry and market conditions and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; increasing competition; availabili...