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Lighthouse Petroleum To Buy Haskell County Energy Leases for $1.2 Million

Texas Business reports: LEVELLAND—Lighthouse Petroleum reached an agreement with HCE Operating LLC   to buy a 100% working interest and 75% net revenue interest in leases, wells, well bores and equipment for the Reames/Masterson Production located within the Lindsea Bea Field of Haskell County, Texas.

Lighthouse has negotiated to purchase the leases, wells and equipment from HCE for $1.2 million

Based on a 1998 geological report, indications are that the leased property contains a producing zone called the Lindsea Bea Conglomerate.

The report states that there are 472,000 proven undeveloped barrels (PUD) of oil, less approximately 22,000 barrels produced since that date, supporting an economical assumption value of 13.5 million. The report will be updated during the verification process.  

Currently there are  13 wells, two of which are active, producing approximately six  BOE of oil and 22 MCF of gas per day.  In addition to the purchase cost, the agreement states that Lighthouse will incur additional costs to extract the oil and gas and will bear all the risk associated with the recovery. The additional costs for extraction are estimated to not exceed $1million.

This oil and gas evaluation of reserves report is based solely on the reserve of the Lindsea Bea Conglomerate. The zone is located at a depth of 4,990ft – 5,018ft.  The Hendrick Ranch Field, which is the field where these wells are located, is a multi-pay area that contains wells producing from nearby intervals identified as the Lindsea Bea Conglomerate, Bend Conglomerate, Caddo Lime, Strawn Sands, Palo-Pinto Lime, Patio Sands, Lower King and Cook Sand formations.  The Lindsea Bea Conglomerate formation is from the Lower Pennsylvanian System, a major producing deltaic movement within the study area. All wells in this project have multiple pay-zones identified in their logs via dual-density logs, dual spectrum logs, Halliburton producing zone log analysis reports, and drilling mud logs.

The agreement stipulates that Lighthouse retains the right to have additional partners it deems necessary to complete this transaction.

Lighthouse Petroleum, Inc. is a development stage junior oil and gas company.  

Paradigm Oil and Gas Inc. identifies and acquires energy properties with previously discovered known oil and gas reserves that have not either been fully produced from, or fully developed and defined.