Texas Oil & Gas Inc., a unit of Universal Bioenergy Inc., has agreed to a joint venture with ProGas Energy Services Inc. of Texas to produce and supply natural gas and oil to Universal and NDR Energy Group customers.
The companies said they will develop a prospect in the Premont Northwest Field in Jim Wells County, TX. Three initial wells have been drilled and are producing. Plans are to develop up to 110 wells. ProGas will be the operator of the field. According to ProGas, estimated reserves are more than 20 million bbl of oil and 17 Bcf of natural gas.
"Texas Gulf Oil & Gas will obtain the gas and oil from the wells with ProGas Energy and additional products through ProGas's associated producers. The products will be marketed through our subsidiary NDR Energy Group," said Solomon Ali, Universal senior vice president. "NDR Energy's customers include Pacific Gas & Electric, Baltimore Gas & Electric, Memphis Light Gas & Water, CenterPoint Energy Resources and National Grid."
NDR Energy Group CEO Gina Roy said, "We believe with this joint venture, we'll obtain the quantities of supplies from Texas Gulf Oil & Gas, ProGas Energy, and the other producers to meet our customers demands...[W]e feel that we could potentially sell up to a projected $1 billion a year in gas to our growing customer base as the supplies become available."
NDR also announced that it has signed an agreement to supply natural gas to Sempra Energy's Southern California Gas Co. (SoCal).
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