Maverick Energy Group Ltd., a member of Z2 LLC, said it began construction and repair work on the gas gathering system at the Big Foot Field in Texas. Preliminary tests indicate the field could deliver 300-500 Mcf/d to the first purchaser of the supply once the work is completed. Maverick said it should finalize a gas contract within the next two weeks.
The construction and repair of the gathering system in the field are part of the operations planned by Maverick, as a member of Z2, with funding from the $40,000,000 advancing credit facility, which Z2 closed with Gasrock Capital LLC in August 2006.
The Big Foot field was identified in December 2004. It occupies 7,200 acres primarily in Frio County, with minimal leases in Atascosa County. Maverick is the operator of the field and owns 11.5% member interest in Z2, the owner of the field. In addition, Maverick has negotiated a six-month option to acquire an additional 13.184% membership interest in Z2. Maverick's option exercise price is $1 million and may be exercised at any time through July 17th, 2007. If it were to exercise this option, Maverick's membership interest in Z2 would increase to approximately 24.7%.
"The addition of the gas gathering system resulting in the sale of gas from the Big Foot Field is an enhancement to the oil sales contemplated from Z2's Gasrock financing," said Maverick CEO Jim McCabe.
According to Maverick's website, as of Jan. 1, 2006 petroleum consultants Lee Keeling and Associates Inc. estimated the remaining net oil reserves for 229 proved developed producing wells at 1,279,917 bbl and proved undeveloped primary wells at 8,424,005 bbl.
The Big Foot Field was originally developed by Royal Dutch Shell. It has approximately 300 production wells in the field of which approximately 240 are currently producing revenue. San Antonio-based Maverick is also the part owner of several producing natural gas wells and owns additional natural gas leases in West Virginia.
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