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Northern Minerals & Exploration Ltd. Enters Into Agreement on Three Wells on the Coleman County Lease in Texas
Northern Minerals & Exploration Ltd. Enters Into Agreement on Three Wells on the Coleman County Lease in Texas.
About this update from Northern Minerals & Exploration Ltd.
[{"type":"text","content":"\nNorthern Minerals & Exploration Ltd. Enters Into Agreement on Three Wells on the Coleman County Lease in Texas\n\nNorthern Minerals & Exploration Ltd. Enters Into Agreement on Three Wells on the Coleman County Lease in Texas\n\nCISCO, TX--(Marketwired - April 09, 2015) - Northern Minerals & Exploration Ltd. (OTCQB: NMEX) (\"Northern\" or the \"Company\"). Further to the Company's news release of October 15, 2014 whereby Northern acquired a 75% WI in the Coleman County lease (\"Lease\"), subject to a 25% royalty. The Company is pleased to announce that it entered into an agreement for the purchase and sale of a 37.5% Working Interest (\"WI\"), in three wells on the Lease. The total consideration for the 37.5% WI is $180,000. The funds are to be advanced to the Company as payment towards the turnkey costs of re-working and/or re-completing the three wells, and other costs associated with bringing these three wells back into production.Under the terms of the agreement between the company and the funders, the funders will receive a 50.0% of the WI revenue from these three wells until the funders recapture their investment of $180,000 (defined as \"Payout\"). After Payout they will revert to a 37.5% of the WI revenue for the remaining life of the production from the threewells. These three wells are fully equipped with downhole pumps, rods, tubing, pump jacks, and well head and surface equipment including flow lines, production tanks, meter connections and gas gathering pipelines. The Coleman County 206.5 acre lease is located in a prolific multiple pay area originally discovered by ARCO in the early 1980's. The lease area has six known historic productive formations: Ellenburger (4,200'), Gray (3,850'), Gardner (3,700'), Jennings (3,600'), Upper Capps (3,450'), and Morris (3,400').One of the three wells on this Lease is a direct offset to a well on an adjoining lease that has produced more than 65,000 barrels and 160 million cubic feet of gas also from the Gray Sand formation. This offset well after 28 years of production is still producing an average of 6 barrels and 28 thousand cubic feet of gas per day. Northern is making arrangements with service providers to immediately commence field operations on these three wells on the Lease.Appointment of Vice President and Director \nNorthern is...