Metawells Oil & Gas Inc. (KOSK), Global Oil & Gas Recovery Corp., Signs Letter of Intent with TEXXSTAR INC., to acquire the Shiloh Oil & Gas Project is SE Kansas.
HARRISON, NY, July 23, 2024 (OTC Disclosure & News Service) -- Metawells Oil & Gas Inc. (OTC Pink: KOSK) announces that Global Oil & Gas Recovery Corp. (GlobalOG) has signed a Letter of Intent (LOI) with TEXXSTAR INC., to acquire the Shiloh Oil & Gas Leasehold in SE Kansas.
On May 16, 2024, Metawells Oil & Gas Inc. (the "Company" or "KOSK") announced that it had entered into a definitive agreement dated May 14, 2024 to merge with Global Oil & Gas Recovery Corp. an arm's length privately held company ("GlobalOG") incorporated in the state of Delaware.
The transaction is structured as a shares exchange in which KOSK will acquire all the issued and outstanding capital interest or shareholdings of Global, in exchange for KOSK authorized but unissued common stock.
The Shiloh Oil & Gas Leasehold
This leasehold straddles 4 counties in Southeast Kansas – Allen County, Woodson County, Wilson County, and Neosho County. The 4 counties where the leasehold is located realized production of 719,217 barrels of oil and 7,299,945 MCF of natural gas in 2022.
This project was last put together by Admiral Bay Resources in 2007 and produced over 3.8 BCF of gas for Exodus Gas & Oil LLC.
Geology
This project lies in the Cherokee Basin just to the south of the Bourbon Arch, which borders Kansas and Oklahoma. Available data and mapping indicate the basement structural features in the area of the state are located on the top of Arbuckle in southeast Kansas, as well as the top of the Mississippian Formation. Major structural features show that the Bartlesville Sandstone, Squirrel Sandstone and Mississippian are productive formations.
This area is called the "Coalbed Methane" formation, which can be seen from the perforations on the cross section of the Sandstones, Bartlesville and Squirrel area of the reservoirs. Also, the Mississippian is usually a limestone formation, which has the potential for oil and gas and in certain areas helium.
Shiloh Gas Project Highlights
⦁ 5,000 acres HBP
⦁ 30 miles of shut in gas system
⦁ Producing 500 MCFG/D when shut in
⦁ 108 well bores
⦁ Well depth 900'
⦁ Potential to drill 150 more gas wells
⦁ 50# gas gathering lines
⦁ 4.5 inch casing
⦁ $100,000 in usable equipment
⦁ Gathering systems for both gas and water
The Opportunity
In August of 2023 GlobalOG conducted a gas pressure test on the project with a local geologist. The test indicated that 85% of the 108 well bores were available for rework and ready to be swabbed and pumps inspected to be put back into production.
GlobalOG will begin the process of doing a workover on 90 wells with the objective to reactivate the wells in stages, targeting initially a production volume of 500 MCFG/D and then ramping up to 1,000 MCFG/D.
The leasehold previously also produced oil from a couple of wells, although the previous operator did not target the oil. GlobalOG will do a workover on a couple of oil wells, assess the potential to re-work and convert some of the lower producing gas wells to oil, and then begin a drilling program, targeting oil formations which include the Squirrel and the Bartlesville Sands formation. Estimated oil reserves are 926,500 BBL.
Terms of the agreement and financing commitment will be outlined in the Definitive Agreement expected to close on or before August 10th, 2024.