Magellan Energy Signs Letter Of Intent For $50 Million Acquisition Of Oklahoma Properties
Magellan Energy Ltd. (PINKSHEETS: MGLG) is pleased to announce that it has signed a letter of intent with an Oklahoma Private Oil and Natural Gas Group to acquire a substantial portion of their proven and producing properties subject to an extensive due diligence study by Magellan and its advisors on the properties to be acquired.
The Properties that Magellan is currently negotiating are as follows:
Monarch Resources, LLC have producing properties in Garfield, Major, Logan, Kingfisher, Blaine, Noble and Payne Counties, with an estimated oil and gas recovery of $50 million in proven developed reserve properties. Most of these properties require minimal work and costs to increase the producing capabilities of the wells on the leases.
In total there is approximately $100 million in proven developed/undeveloped reserve properties in the Oklahoma area that Magellan is currently negotiating.
“The Acquisition of these producing properties in Oklahoma would create an excellent opportunity for Magellan to become a revenue generating company. This would allow Magellan to materialize its business plan and create capital appreciation to its shareholders.”
The Oil and Natural Gas sector in Oklahoma is part of the huge Mid-Continent Oil Region that stretched from central Texas across Oklahoma to eastern Kansas. Within this vast reservoir of crude oil were some of the nation’s greatest oil finds. TEXAS boasted of Desdemonia, Eastland, Ranger and Breckenridge; KANSAS has Neodesha, Augusta, Eldorado, and Paola; OKLAHOMA claimed Cleveland, Red Fork, Glenn Pool, the Osage, Burbank, Cushing, Healdton, Three Sands, Garber, the Greater Seminole, Oklahoma City, Garvin and many others.
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