Lexington Resources Makes Production Preparations for Its First Barnett Shale Well in Tarrant County, Texas
Posted on: Tuesday, 4 April 2006, 12:00 CDT
LAS VEGAS, April 4 /PRNewswire-FirstCall/ -- Lexington Resources, Inc. (OTC Bulletin Board: LXRS; Frankfurt, Berlin: LXR) (the "Company"), has initiated production preparation on its Oliver Unit #1H horizontal Barnett Shale well in Tarrant County, Texas. The well is scheduled for fracture stimulation ("frac") and completion this month.
It is expected that production from this single well could potentially double the Company's production over its current Arkoma Basin Coal Bed Methane gas production. This important new resource underscores Lexington's strategic decision to expand production to the Barnett Shale play in Texas.
Frac Tech Services, LLC has been scheduled to frac the Barnett Shale zone on April 12th to 14th in order to stimulate gas production for maximum gas flows. Based on successful frac stimulation, subsequent flowback of the frac fluid, and final well completion would result in Lexington Resources' first Barnett Shale Well producing and selling gas this month.
In order to prepare for final production flows, a 300 to 400 foot pipeline will be constructed to tap into the existing gas line on the lease. The Company is currently negotiating pipeline right of way permitting, and has completed contractual arrangements pertaining to well tie-in, metering, transportation, gas treatment and compression, and gas marketing.
A work over rig is scheduled to perforate and further prepare the well this week in advance of the scheduled frac stimulation. In addition, tank battery and production equipment is also scheduled for delivery and installation this week. The frac pit next to the well has been filled with at least 80,000 bbls of water and is built to accommodate the entire frac requirements of the Oliver Unit #1H well in addition to subsequent well(s) on this lease.
The Oliver lease was acquired by the Company with a 100% working interest and a 70% net revenue interest in the 312 acres obtained. The Barnett Shale gas target is estimated by management to be approximately 350 to 375 feet thick, according to offsetting wells drilled by Encana Oil & Gas Inc., and XTO Energy, Inc.
About Lexington Resources, Inc.: Lexington Resources, Inc. is a junior integrated natural resource exploration company engaged in the acquisition and development of oil and natural gas properties in the United States. Its current operational focus is on gas development initiatives in the Arkoma Basin, Oklahoma and the Dallas-Fort Worth Basin in Texas. For further information see: http://www.lexingtonresources.com/
Contact North America: Investor Relations, Lexington Resources, Inc. Phone: Toll Free (888) 848-7377 or (702) 382-5139 Fax: (702) 385-1202 e-mail: info@lexingtonresources.com Contact Europe: International Market Trend AG Phone: 41 43 888 67 00 Fax: 41 43 888 67 09 SAFE HARBOR STATEMENT
THIS NEWS RELEASE CONTAINS "FORWARD-LOOKING STATEMENTS", AS THAT TERM IS DEFINED IN SECTION 27A OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE UNITED STATES SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. STATEMENTS IN THIS NEWS RELEASE, WHICH ARE NOT PURELY HISTORICAL, ARE FORWARD-LOOKING STATEMENTS AND INCLUDE ANY STATEMENTS REGARDING BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS REGARDING THE FUTURE.
EXCEPT FOR THE HISTORICAL INFORMATION PRESENTED HEREIN, MATTERS DISCUSSED IN THIS NEWS RELEASE CONTAIN FORWARD-LOOKING STATEMENTS THAT ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH STATEMENTS. STATEMENTS THAT ARE NOT HISTORICAL FACTS, INCLUDING STATEMENTS THAT ARE PRECEDED BY, FOLLOWED BY, OR THAT INCLUDE SUCH WORDS AS "ESTIMATE,""ANTICIPATE,""BELIEVE,""PLAN" OR "EXPECT" OR SIMILAR STATEMENTS ARE FORWARD-LOOKING STATEMENTS. RISKS AND UNCERTAINTIES FOR THE COMPANY INCLUDE, BUT ARE NOT LIMITED TO, THE RISKS ASSOCIATED WITH PROPERTY DEVELOPMENT AND FUNDING AS WELL AS THE RISKS SHOWN IN THE COMPANY'S MOST RECENT ANNUAL REPORT ON FORM 10-KSB AND ON FORM 10-QSB AND FROM TIME TO TIME IN OTHER PUBLICLY AVAILABLE INFORMATION REGARDING THE COMPANY. OTHER RISKS INCLUDE RISKS ASSOCIATED WITH THE REGULATORY APPROVAL PROCESS, COMPETITIVE COMPANIES, FUTURE CAPITAL REQUIREMENTS AND THE COMPANY'S ABILITY AND LEVEL OF SUPPORT FOR ITS EXPLORATION AND DEVELOPMENT ACTIVITIES. THERE CAN BE NO ASSURANCE THAT THE COMPANY'S DEVELOPMENT EFFORTS WILL SUCCEED AND THE COMPANY WILL ULTIMATELY ACHIEVE COMMERCIAL SUCCESS. THESE FORWARD-LOOKING STATEMENTS ARE MADE AS OF THE DATE OF THIS NEWS RELEASE, AND THE COMPANY ASSUMES NO OBLIGATION TO UPDATE THE FORWARD-LOOKING STATEMENTS, OR TO UPDATE THE REASONS WHY ACTUAL RESULTS COULD DIFFER FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS. ALTHOUGH THE COMPANY BELIEVES THAT THE BELIEFS, PLANS, EXPECTATIONS AND INTENTIONS CONTAINED IN THIS NEWS RELEASE ARE REASONABLE, THERE CAN BE NO ASSURANCE THOSE BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS WILL PROVE TO BE ACCURATE. INVESTORS SHOULD CONSIDER ALL OF THE INFORMATION SET FORTH HEREIN AND SHOULD ALSO REFER TO THE RISK FACTORS DISCLOSED IN THE COMPANY'S PERIODIC REPORTS FILED FROM TIME TO TIME WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION.
THIS NEWS RELEASE HAS BEEN PREPARED BY MANAGEMENT OF THE COMPANY WHO TAKES FULL RESPONSIBILITY FOR ITS CONTENTS. EACH OF THE NASD, THE SEC AND THE OTCBB NEITHER APPROVES NOR DISAPPROVES OF THE CONTENTS OF THIS NEWS RELEASE. THIS NEWS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH JURISDICTION.
Lexington Resources, Inc.
CONTACT: Investor Relations of Lexington Resources, Inc., 888-848-7377,or +1-702-382-5139, or fax, +1-702-385-1202, or info@lexingtonresources.com ,or in Europe, International Market Trend AG, +41 43 888 67 00, orfax, +41 43 888 67 09
Web site: http://www.lexingtonresources.com/
Source: PRNewswire-FirstCall
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