Texas-East

Exterra Energy Inc., Amarillo, closed the purchase from an undisclosed seller of 31 wells on 12 leases in supergiant East Texas Woodbine field.

July 23, 2010

By OGJ editors
HOUSTON, July 23 – Exterra Energy Inc., Amarillo, closed the purchase from an undisclosed seller of 31 wells on 12 leases in supergiant East Texas Woodbine field.

The wells are part of an overall East Texas package on which Exterra plans to close shortly, and it closed on these wells to immediately begin reequipping them.

The overall package consists of 395 oil wells on 3,500 acres in Upshur, Gregg, and Rusk counties. The leases produce 100-120 b/d of oil from 52 wells. Exterra plans to reequip 100 wells in 6-8 months at a cost of $100,000/well.

Returning the other wells to production is a longer-term goal, and the leases have upside potential in deepening many of the prospects and new drilling.