Xtreme Oil & Gas, Inc. Enters Into a Contract to Purchase and Develop 936 Acres in the Haynesville Shale
Xtreme Oil & Gas, Inc. (Pink Sheets: XTOG) is pleased to announce that it has entered into a contract to purchase and develop approximately 936 acres in the Haynesville Shale. Xtreme’s target in the Haynesville Shale is to acquire 50,000 acres.
Xtreme Oil & Gas announced today that it has entered into a contract for the purchase and development of approximately 936 acres in the North East Texas region where Haynesville Shale is present. The property is presently undeveloped and Xtreme has begun discussions with geologists to determine the best approach to exploit the Haynesville Shale within the properties. While Xtreme has previously focused on reworking and redeveloping mature oil fields using innovative technology and hands-on management to bring additional reserves to the surface at the lowest cost, the proximity of the properties to existing wells, existing gas pipeline connections and established geology will allow Xtreme to apply its disciplined approach to controlling drilling costs and establish new strategic partnerships to exploit the Haynesville Shale for the benefit of its shareholders. The proximity of the properties to a large gas pipeline presents Xtreme with the opportunity to be a substantial marketer in the region.
Xtreme is a Licensed, Bonded and Insured Operator in the State of Texas. Xtreme is also the owner of a majority interest in Small Cap Strategies, Inc. (OTCBB: SMCA), a fully reporting business development company based in Las Vegas, Nevada. Business development companies are closed-end, managed funds which raise money primarily for start-ups, growth opportunities and other investments which traditional investment companies avoid.
Willard McAndrew, CEO of Xtreme, announced the acquisition, adding, “We believe the opportunities represented by these properties will produce both a short-term win for investors and establish Xtreme as a credible player in the development of shale properties. This acquisition is the first step in an aggressive strategy to acquire a significant position in the largest natural gas field in the United States.”
Bill Davis, manager of Two Daughters Energy, added, “We looked at a number of operators and other approaches to develop these properties and believe that the folks at Xtreme represent the highest degree of professionalism and expertise. We look forward to working with them and believe that these properties will be the beginning of a strong and mutually prosperous relationship.”
About the Haynesville Shale
Bruce Scambler, President of Xtreme, explained the “Haynesville Shale is a black, organic rich shale deposited during the Upper Jurassic age (about 150 million years ago) that is found at a depth of around 8600′ to 9000′ underlying much of the Gulf Coast area of the United States. Haynesville Shale is characterized by a higher porosity meaning it has a greater ability to hold soluble gases and therefore a propensity to contain a greater amount of natural gas. Preliminary independent reviews suggest a total thickness on our property of the Haynesville Shale in the 300-350′ range which would suggest original gas in place in the range of 130 BCF to 150 BCF per square mile (or roughly 50% more than Barnett Shale). This information comes from four deeper wells drilled around the property.”
About Xtreme
Xtreme Oil & Gas, Inc., headquartered in Dallas, Texas, is an independent oil and gas exploration and production company which either obtains producing wells with the expectation of rehabbing the wells in an effort to increase production or drill new wells in the hope of obtaining oil and gas production in commercial quantities. For more information on XTOG, please go to www.xtremeoilandgas.com.
About Two Daughters Energy
Two Daughters Energy, LLC is an Exploration and Production Company based in Olney, TX with working interest in producing leases in North Texas and Oklahoma. Manager Bill Davis has long time family ties to North Texas Production dating back to the 1940s. Two Daughters Energy LLC is excited about the working relationship with Xtreme Oil and Gas, Inc.
Forward-looking Statements
Certain statements in this announcement regarding future expectations, objectives, intentions and plans for oil and gas exploration, development and production such as “may,”"potentially,”"expects,” and similar terms may be regarded as “forward-looking statements” within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. Management’s current view and plans, however, are subject to numerous known and unknown risks, further testing and analysis, uncertainties and other factors that may cause the actual results, performance, timing or achievements of Xtreme to be materially different from any results, performance, timing or achievements expressed or implied by such forward-looking statements. Xtreme undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.