Exterra Energy, Inc. (EENR.OB) is an independent oil and gas acquisition, exploration, and production company based in Texas. Exterra is primarily active in the Barnett Shale gas field in Texas. They now hold an undivided interest in approximately 17,500 gross acres of leases in the Newark East (Barnett Shale) area, with over 50 producing wells on the acreage.
Currently the Barnett Shale area in Texas is the hottest exploration area in the U.S., and is generating a lot of excitement in the investment community. It is considered to be the largest onshore natural gas field in the U.S. The entire field has already been proven to have 2.5 trillion cubic feet of natural gas and is estimated to contain as much as 30 trillion cubic feet of natural gas. Oil has also been found there in lesser but still commercially viable amounts.
In 2006, Exterra was the 39th largest producer out of 110 companies in the Barnett Shale area. For their near term growth, the company has negotiated an exclusive right to acquire working interests in seven drilled and cased wells located in prime areas of the Barnett Shale. Three of these wells are currently in production, while four need to be fracture-stimulated and brought into production. Also included in this exclusive agreement are two additional drill sites. Exterra can acquire between 18% and 75% working interest in these wells by funding the total cost to ‘frac’ these wells, as well as satisfy outstanding liabilities.
Current production from Exterra’s working interests in over 50 producing wells in the Barnett Shale area is approximately 9 mmcf per day. These assets were acquired by Exterra in October 2007 and are located in what is generally referred to as the ‘core’ area of the Barnett Shale. These particular wells have provided the company with a foundation from which to build and expand its operations.
Let us hear your thoughts below:
