Paxton Energy, Inc. , an energy turnaround company engaged in the acquisition, exploration, development and drilling of oil and natural gas properties, announces that on March 28, 2011, Paxton entered into a definitive agreement with Montecito Offshore, LLC (“Montecito”) of Louisiana to acquire a 70% working interest in 546.875 acres in the Vermilion 179 (VM 179) track. Located in the shallow waters of the Gulf of Mexico offshore from Louisiana, VM 179 is adjacent to Exxon’s VM 164 #A9 well, which is currently producing 2,500 BOPD (barrels of oil per day). Based on Internal Engineering Reports, VM 179 contains reserves valued at $92 million at PV-10 (present value at a discount rate of 10%).
The agreement calls for a deposit of $250,000 paid to Montecito by April 4th. The remaining balance of $1,750,000 plus 15,000,000 shares of Paxton common stock are due to Montecito by May 27, 2011. Third party engineering reports dated March 29, 2010, by James F. Hubbard, indicate proved and probable reserves of 1,600,202 barrels of oil (bbl) and 3.37 billion cubic feet (bcf) of gas for 100% of the working interest in the Vermilion 179 track.
“The Vermillion 179 acquisition follows the company’s strategy of acquiring producing properties with proved and probable reserves,” said Charles F. Volk, Jr., Chairman and CEO of Paxton.
About Paxton
Paxton engages in the acquisition, exploration, development and drilling of oil and natural gas properties. Paxton is an energy turnaround company whose strategy is to acquire cash flow producing properties with proved and probable reserves, develop the fields by reworking existing wells and drilling new wells. Paxton was founded in 2004 and is based in Stateline, Nevada.
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Source:Paxton Energy,March 30, 2011;