TX Holdings Inc. (OTCBB: TXHG) announced today the formation of a strategic alliance with Salt Lake City-based Hewitt Energy Group Energy, LLC (Hewitt Energy Group) to pursue energy-related activities in Kansas, Oklahoma, Utah and Texas.
As part of this alliance, Hewitt Energy Group will contribute projects, each with reserves of 1 to 4 million barrels of infield engineered reserves in exchange for project funding and other considerations. As a part of this alliance, Hewitt will provide ongoing consulting services, digital interpretive analysis of these and other project areas currently being generated from ongoing research activities and project oversight to implement production activities in the mutual areas of focus. For its part, TX Holdings will provide the needed capital to implement production in these and other operations.
The companies will focus initially on the opportunities in Kansas. Shallow drilling objectives of 3,000 to 5000 feet, favorable lease terms, excellent per well average reserves and proximity to general energy infrastructure create an excellent environment for growth.
“We are excited about forming a very dynamic alliance with Hewitt Energy Group. Their level of experience and project sophistication is a major benefit and catalyst to our future growth,” commented Mark Neuhaus – president and CEO of TX Holdings.
“This alliance provides each of our entities with the tools to accomplish our mutual objectives. We look forward to working together,” stated Douglas Hewitt – CEO of Hewitt Energy Group.
Historically, Kansas ranks fifth among states in the United States in cumulative production with over 30 trillion cubic feet of gas (Tcf) and over 6.6 billion barrels of oil produced to date. TX Holdings will begin work in central Kansas, where significant oil and gas reserves remain. In addition, Central Kansas holds some of the largest reserves of helium in the world, a quickly depleting commodity that currently sells for more than $70 per thousand cubic feet.
“We are very pleased to announce that we have taken the giant next step in building the Company, this gives TX Holdings access to large working interest in a number of proven producing properties along with a tremendous data base that has been developed by HEG engineers and geologists. This is one of the many steps we are taking to further grow TX Holdings. We look forward to sharing more about this exciting new phase of growth with our shareholders soon,” concluded Mr. Neuhaus.
About TX Holdings, Inc.
TX Holdings is a publicly traded oil and gas production company. The Company’s strategy consists of acquiring and developing shallow, low-risk, high-yield oil and gas leases in West Texas, Kansas and Oklahoma. TX Holdings currently has a working interest in over 100 wells divided between five active projects. For further information, please visit the Company’s website at www.txholdings.com.
__________________________________________________________________________________________________________________________________________________________ Contacts: TX Holdings, Inc.
Mark Neuhaus President and Chief Executive Officer Phone: 305-420-6781 www.txholdings.com
-more- FORWARD-LOOKING STATEMENTS: The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. The company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date thereof.
