AMARILLO, TX / ACCESSWIRE / March 13, 2018 / Amazing Energy Oil and Gas Co. (AMAZ) ("Amazing," "Amazing Energy," or the "Company") today announced a Joint Venture Term Sheet agreement with Encore Natural Resources, LLC ("Encore") to develop multiple sections within Amazing Energy's current holdings in Pecos County Texas.
The agreement consists of the first 14 wells of which will be re-entry wells to be completed or recompleted in the first six months following the execution of this agreement. Following the initial 14 wells, the Agreement states that Encore will drill an additional 36 well program with one well drilled each month until the program is complete. Encore has the right to extend the initial 36 well program as long as they continue to drill one well per month. The Agreement provides Encore with an opportunity to acquire a 50% interest in the new wells drilled and the drilling unit per the RRC in Pecos County, TX. The Agreement also provides Encore with an opportunity to acquire 25% interest in the reworks or recompletions. Both parties are working diligently to enter into final Joint Venture documents along with the Joint Operating Agreement. These agreements are expected to be completed within two weeks. If Encore does not like their results they are free to stop drilling with no penalties and only earn the interest on the wells they participated in.
"Our near-term goal will be to re-work the initial 14 wells and to accelerate existing production," stated Will McAndrew, CEO of Amazing Energy. "We look forward to working with Encore and their team as we develop a part of the Permian Basin acreage. With the success of the last two wells we believe this will be the 1st of many possible JV partners beginning to come to the table to help us develop our property. We are currently visiting with two other groups this week on possible JV agreements. This is what the company has been working towards these last several months and has been one of the primary drivers of the science and understanding of the opportunity a property of this size. This joint venture is aligned with Amazing's strategy to strengthen our position by increasing production while de-risking this sizeable asset."
About Amazing Energy Oil and Gas:
Amazing Energy Oil and Gas, Co. is an independent oil and gas exploration and production company based in Amarillo, TX. The Company operates leaseholds in the Permian Basin of West Texas, where it has rights within a 70,000-acre leasehold in Pecos County, TX. The Company primarily engages in the acquisition and exploitation of oil and natural gas properties with a focus on well-defined plays containing stacked pay zones. More information may be found on Amazing Energy's website at www.amazingenergy.com.
About Encore Natural Resources, LLC:
Encore was started to take advantage of the opportunity presented by AMAZ and the Pecos County Texas property on the Central Basin Platform. With a wealth of experience management has been involved in all areas of the oil and gas industry from leases, drilling'. and completions as well as public companies.
Notice Regarding Forward-looking statements:
This news release contains forward-looking information including statements that include the words "believes", "expects", "anticipate" or similar expressions. Such forward looking-statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof. Information concerning these and other factors can be found in the Company's filings with the SEC, including its Forms 10-K, 10-Q, and 8-K, which can be obtained on the SEC's website at http://www.sec.gov.
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SOURCE: Amazing Energy Oil and Gas Co.