TX Holdings Inc. (TXHG)
TXHoldings Inc. is an OTCBB traded oil and gas production companyengaging in the acquisition of producing and non-producing shallow, lowrisk oil and gas leases in the Abilene area of West Texas.Headquartered in Ashland , Kentucky , the company concentrates theirefforts on acquisitions in the Eastland and Callahan County regions ofWest Texas . This area is between Fort Worth and Midland .
Oneof TX's holdings is their Williams Lease. They purchased a workinginterest in three Williams Leases. These are the "Louie Williams," theWilliams "A" and the Williams "B". A geological report on this Leaseshowed 24M barrels of recoverable reserves. The zones are shallowzones, with depths of less than 1,000 feet.
TXalso has their Contract Area 1 Lease (C/A1). They acquired a sixtypercent working interest in four leases totaling 247 acres in this areaThe leases are the "Roy Adams" of 160 acres; "Isenhower", which is 20acres, and Isenhower Estate "C" consisting of 22 acres. They also havetheir W. Isenhower Estate. The company estimates C/A1 to have85,000,000 gross barrels of oil with 36,000,000 net barrels of oilrecoverable.
The company also has their ParksLease. They acquired a seventy-five percent working interest in thislease of 320 acres. It has approximately 22 existing wells andestimated recoverable reserves of 12M to 13M barrels. This area is nextto the company's Williams Leases.
TX HoldingsInc.'s immediate priority is to begin the production process for theirexisting wells. They desire to continue to expand their acquisition anddevelopment programs at the same high levels of density per acre in theimmediate future. They look for leases that have existing wells, andlarge, undeveloped non-depleted shallow reserves. They look forreserves that are capable of producing oil in the short term once thecompany has completed the necessary workovers or recompletions. Theyalso want potential leases to have ideally approximately 75 to 80percent of undeveloped acreage. They will then utilize low-cost,low-risk infield drilling to further their development programs.
InJuly, The Chairman of the Board and CEO of TX Holdings, Inc. Mr.William "Buck" Shrewsbury reported that the first load of oil wouldsell from their Parks Lease. TX Holdings expects to be increasingproduction by bringing on an additional eight wells in the very nearfuture. The company is reworking two of the eight wells to optimizeproduction yields. Also in July, the company reported that ContractArea One (C/A1) is producing a truckload of oil per week. Thisproduction works out to roughly 170 barrels a week.
TX Holdings Inc. (TXHG) closed today at $0.14 up $0.02 or 21.74 percent. Volume was 252,450 for a 3-month average volume of 36,967.70. The stock's 52-week spread is $0.07 to $0.47.