Toronto-based Kalkee Energy Ltd has completed the acquisition of four oil and gas projects in Texas through its Texas subsidiary Estacado Energy LLC.
Kalkee has acquired the Red Horse exploration project, encompassing 1,920 net mineral acres on the JE Clark Ranch in Terrell County, for $100,000 in cash with an agreement to drill its first well within three years from of the date of signature. The company has also signed a stand-alone agreement that gives it the option to lease additional acreage on the 45,000-acre property and signed an area of mutual interest agreement with the project’s geological developers on another 210,000 surrounding acres the ranch he said in a press release on Tuesday.
The second acquisition is the Great House project in Throckmorton County, which consists of 1,514 acres of oil and gas rights and a minimum of 12 shut-in wells. Kalkee paid total consideration of $100,000 and two million Kalkee shares to Cooper Oil and Gas for the project. According to the release, oil production from the project was a steady stream with low production decline rates before it was shut down around 1998 due to low oil prices. The wells require repairs and improvements to the lifting and pumping equipment.
The Piave/TCSL project, also in Throckmorton County, is a set of production leases acquired by Kalkee following its acquisition of Estacado Energy in April. The leases consist of more than 500 acres with 11 shallow production wells producing oil from the Strawn Formation and three shut-in wells within the deeper Tannehill Sand oil formation. The project has a 2019 engineering report that estimates approximately 1.8 million barrels of remaining oil resources with 36 additional drill locations, according to the release.
The fourth acquisition is the Cooke Ranch project, which Kalkee says represents an opportunity to accelerate its oil and gas production efforts in the prolific oil-producing region of La Salle County in South Texas. The company initially acquired six wells in the area and 240 acres of oil and gas rights and has an option on a seventh well. It also has an option on an additional 1,462 acres, covering shallow oil formations. Kalkee’s initial goal is to conduct various workovers and re-completions along with drilling new laterals of existing wells, targeting its initial production efforts in the shallower Wilcox and Escondido formations. Terms of the transaction were not disclosed.
Kalkee aims to complete a private placement of up to $2 million at a price of $0.20 per common share to increase its production and fully capitalize its operations. The funds will be used to pay for new wells, existing workover wells and the purchase of field operating equipment for its Cooke Ranch project and Throckmorton oil and gas leases along with administrative and corporate governance functions, it said. say the company
In a series of equity placements of its common stock from November 2022 to May 2023, Kalkee said it was able to raise capital totaling $1.06 billion (C$1.438 billion ), according to the statement.
In April, Kalkee fully acquired Estacado Energy for a total of $500,000 and 500,000 of its common shares, according to a previous press release.
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