New Western Energy has put together a nice portfolio of producing oil wells throughout the Gulf States (Kansas, Oklahoma, Pennsylvania, and Texas), pursuing an acquisitive strategy focused on properties that have shown favorable discovery characteristics. The company today announced yet another important acquisition today, growing their leasehold footprint in Kansas to over 2.55k acres with a choice piece of land, the 300-acre Fields Lease in Chautauqua County.
Alongside the company’s two other key projects in OK, the Phillips Lease (75% WI) and Glass Lease (75% NRI), as well as projects like the B & W and Smith Leases, with which this new acquisition is contiguous, NWTR looks to be building a serious district foundation. This foundation takes advantage of some ideal geology, an area known as the Chautauqua Arch.
In the south the Central Oklahoma platform merges into the prolific Cherokee basin and to the north there are also multiple vectors for prime Pennsylvanian hydrocarbon sand reservoirs. The shallowness of eastern targets (westerly dipping strata) and abundant pre-Pennsylvanian capacity further south, underscores the inherent value of the region from a production standpoint.
This is prime cut of Pennsylvanian Cherokee shale territory with healthy targets in the Weiser, as well as some Wayside Sands. The host of production targets in the area is huge and well-known, including the eminent Arbuckle reservoir, the Layton, Lola, and Redd Sands, as well as the Oswego Lime and Mississippi Chat. This is a hydrocarbon-rich district and NWTR has wasted no time sizing up the situation, identifying where the smart money is and engaging their acquisition/partnering strategy. Several billion barrels have been pulled out of the Central Kansas Uplift carbonate reservoirs since 1910 and Arbuckle reservoirs alone have pumped out some 2.19B bbls.
President and CEO of NWTR, Javan Khazali, emphasized the significance of the company’s growing land position in the Chautauqua Arch to shareholders and reassured markets that NWTR would continue to aggressively stitch together key production targets in the district. Leaseholds with proven oil and gas reserves like the one acquired today will continue to be the company’s bread and butter, even as the cost saving synergies from the contiguous land position emerge, with upcoming work on the Smith Lease bleeding exploration and development uptick into end game production momentum across the Fields/B&W. New Western plans to kick the E&D at Smith up a notch and relatively soon too, with the improved acreage footprint bolstering company confidence, as well as eagerness to get at the rich energy reservoirs.
NWTR has a solid envelope of oil, gas, and mineral interests which they are continuing to stuff with more goodies for the shareholders.
For more information on New Western Energy, visit www.NewWesternEnergy.com
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