September 15, 2008
Paxton Energy Announces Financing and Current Drilling Activities
Paxton Energy, Inc. (OTCBB: PXTE) announced today that the company has completed financing consisting of the issuance of $300,000 of secured notes. The interest payable on the notes is 1 percent a month with the principal due in 2 years. The Company used $75,000 to reduce its obligations to its lease operator Bayshore Exploration, LLC. In connection with the payment Bayshore reduced the outstanding payable from $498,000 to $200,000.
The Company also paid approximately $17,000 to complete payment of its share of the re-purchase of a 220 acre Cartwright lease on the Cooke Ranch. The Cartwright #3 Escondido well is currently being completed on the Cartwright lease by Carrizo Oil under a farm-out agreement whereby Paxton would retain a carried 1/8th of our 31.75% working interest for a net 3.95% carried working interest.
Bayshore is currently in negotiations with other companies in pursuit of additional Escondido farm-out opportunities on the Cooke Ranch under similar terms.
About Paxton Energy, Inc.
Paxton Energy, Inc. is an energy exploration and development company with minority working interests in the Cooke Ranch area of La Salle County, Texas, all operated by others. Paxton has up to 31.75% working interest in the Cooke Ranch 8,884 gross acre lease and up to 75% working interest in the Storey Ranch 2,268 gross acre area located in La Salle County, Texas.
For further information, please visit the Company's website at http://www.paxtonenergyinc.com or call 866-972-9866.
THIS NEWS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS ARE NOT GUARANTEES OF FUTURE DRILLING OR OTHER EXPLORATION OR DEVELOPMENT RESULTS, THE ACTUAL PRESENSE OR RECOVERABLITY OF ESTIMATED RESERVES, THE ABILITY TO ESTABLISH RESERVES EQUAL TO THE POTENTIAL OF EXPLORATION TARGETS, PRODUCTION AMOUNTS OR REVENUES, DRILLING AND EXPLORATION COSTS OR SCHEDULES OR SIMILAR MATTERS. THESE STATEMENTS ARE MADE UNDER THE "SAFE HARBOR" PROVISIONS OF THE UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND INVOLVE RISKS AND UNCERTAINTIES WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE IN THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN.
Investor Relations Contact: Toll Free: 877-972-9866 [email protected]
SOURCE: Paxton Energy, Inc.