Infinity Energy Resources, an independent oil and gas exploration and development company, announced this Monday it completed the acquisition of the 100% of the working interest, and all of the current production of 11,000 acres in the Central Kansas Uplift geological formation.
Firstly, the acquisition was made from Core Energy, a closely held company pursuant to an option it had previously acquired.
Secondly, the acquisition had a value of around $900,000 which Infinity Energy paid to Core Energy at the closing of the agreement, on April 1, 2021.
Thirdly, Infinity Energy utilized the net proceeds of its recently completed $2.05 million Convertible Preferred Stock Offering to fund the purchase and planned development of the site.
Moreover, as said above, the purchase included existing production equipment; also, infrastructure and ownership of 11 square miles of existing 3-D seismic data on the acreage.
In addition, the site contains one horizontal producing well; one horizontal injection well; also, two conventional vertical producing wells and one supply well; which currently produce from the Reagan Sand zone with an approximate depth of 3,600 feet.
Also recommended for you: DAPL on a lifeline as judge allows it to keep running until April 19. Click Here.
Infinity Energy to expand production of the site
On the other hand, the site acquired produced approximately 29,000 cumulative barrels of oil; over the prior three-year period, according to records maintained by the Kansas Geological Society.
Furthermore, Infinity Energy has already begun with workover/stimulation activities on the two conventional producing wells; which are also expected to be completed within the next 30 days, as the company report states.
On the other hand, for the horizontal producing well, the company will complete stimulation activities in the next 90 days. As the company intends to drill at least four conventional production wells within the 12 months following the closing of the acquisition.
Finally, Stanton E. Ross, Chairman and Chief Executive Officer of Infinity, said. “The potential for additional oil, also, gas and other mineral reserves in commercial quantities for development purposes is very exciting; and we hope it will add to the existing oil & gas reserves on the Properties.”
He also added. “The Properties will give us the opportunity for significant discovery and development of oil and gas reserves; ones that can be economically produced at low risk with low lifting costs, in one of the more proven basins in the heartland of USA.”