FRISCO, Texas, June 29, 2018 (GLOBE NEWSWIRE) -- West Texas Resources (“WTR” or the “Company”) (OTCBB:WTXR) announced today that
the Company has agreed to a Joint Venture Agreement with Miller Oil Properties, Inc. and D-Mil Production, Inc. (“Miller
Companies”).
WTR will acquire certain non-operated working interests in properties which are currently owned by non-operating partners to the
Miller Companies. These properties are located in Oklahoma and Texas and operated by the Miller Companies.
Under terms of the agreement WTR acquires most of the non-operated working interest in the properties which are located in south
central Oklahoma and north Texas. The properties currently comprise working interests in nineteen (19) wells, ten (10) of which are
wells that are currently waiting on re-completions and/or work overs. As part of the Joint Venture Agreement, WTR will fund
the development of Proved Behind Pipe Reserves and Proved Shut-in Reserves on these ten wells. The total estimated capital
required to carry out the development plan is $423,500.00. Purchase and Sale Agreements (PSA) for the non-operated working
interests have previously been negotiated by the Miller Companies and are in hand. WTR will pay $250,000.00 to acquire
the non-operated working interests under PSA. Hunter Stuart Energy Advisors and Ponderosa Resources Corporation, who provided
financial advisory and petroleum engineering services will be paid a sum of $100,000.00 upon closing of the PSA, fifty percent
(50%) of this fee may be paid, at the option of WTR, in WTR stock based on the closing price of WTXR common shares on the date of
execution of this agreement. Closing of the PSA is subject to WTR’s ability to raise the required capital to acquire the
working interests.
Management Comments
Mr. J.D. Kerr, President of West Texas Resources said: “This is an exciting opportunity for West Texas Resources and our
shareholders. It’s expected that it will take about four months to complete the work-over program and restore all 19 wells to full
production at which time WTR is projected to have monthly production of approximately 90 bopd (barrels of oil per day) net to the
Company. This will result in significant revenues to the Company that are substantially in excess of the investment being
made. We expect to fund this acquisition through the sale of equity, so the company will remain unencumbered by debt.”
About West Texas Resources
West Texas Resources, Inc. is engaged in the business of oil and gas exploration and development in North America. The Company's
objective is to become an independent energy company engaged in the acquisition, development and exploitation of oil and gas
properties in North America in partnership with oil and gas producers. The Company's strategy is to pursue strategic acquisitions
of interests in oil and gas properties, including prospects with proven and unproven reserves, which it believes to have
development potential and will provide good economic returns. The Company targets both new and existing fields and producing wells
to be revitalized.
Forward Looking Statements
This press release contains forward-looking statements concerning West Texas Resources, Inc. and the expected benefits to
the Company from its joint venture with the Miller Companies. Those forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause actual results to differ materially. Among those factors are: (1) the Company’s
inability to close on the acquisition of the working interest from the Miller Companies; (2) the risk that the Company may not
realize all of the intended benefits from its joint venture with the Miller Companies, and (3) those other risks described in the
risk factors disclosed in the Company’s Annual Report on form 10-K filed with the SEC on February 14, 2018. The Company does not
undertake, and specifically disclaims any obligation, to update or revise such statements to reflect new circumstances or
unanticipated events as they occur, except as required by law.
Contact: J.D. Kerr, President
(972)832-1831
[email protected]
