Aurex Energy Corp. (TSXV:AURX) announces that it has completed the acquisition of a privately-held US company (the “Subsidiary”) with substantial natural gas reserves in the Barnett Shale, Texas.
Aurex Energy Corp. (TSXV:AURX) announces that it has completed the acquisition of a privately-held US company (the “Subsidiary”) with substantial natural gas reserves in the Barnett Shale, Texas. AURX has acquired all of the capital stock of the US company in consideration of AURX’s issuance of 12,705,000 shares of its common stock to the shareholders of the Subsidiary. The acquisition is an arm’s-length transaction and has received conditional acceptance from the TSX Venture Exchange.
The Subsidary’s primary property consists of 10 shut-in natural gas wells (8 horizontal wells and 2 vertical wells) on 1,400 acres located in the Fort Worth Basin. The Company intends to re-work and re-fracture the shut-in wells with the goal of generating significant cashflows to expand and develop an asset base of both producing oil and gas and mineral properties. Total Proved Plus Probable Reserves are 24.6 Billion Cubic Feet (“BCF”) of natural gas. The estimated Net Present Value (“NPV”) of the net revenue (after all operating costs, royalties and taxes) from the Proved Plus Probable Reserves, using forecast pricing, is US$22.0 million. Peak operating cash-flow (before income taxes), after reworking all wells, is estimated at US$10.8 million per year. Estimated reserves and economic valuations are from a NI51-101-compliant report prepared by a Qualified Reserves Evaluator (“QRE”), MKM Engineering, dated December 28, 2018 and effective Jan 1, 2019.
Gary Billingsley, President, comments “We are pleased to have finally completed this acquisition and look forward to advancing both the natural gas and mineral projects as a restructured company under a new corporate banner. Our goal is to focus on developing a diversified portfolio of resource assets geared to meeting the demands of current and future energy producers. This means developing natural gas resources to meet the demand for products like Liquefied Natural Gas (“LNG”)” and developing mineral resources like copper, zinc and cobalt to meet the demand for metals critical to “green” technologies and the move to electrification. Building a solid base of natural gas assets means generating internal cash-flow reducing the reliance on equity funding moving forward, and helping support mineral project development.”
About Aurex Energy Corp.
Aurex Energy Corp. is a Canadian-based resource exploration and development company with its head office in Saskatoon, SK. AURX is focused on the acquisition and development of a diversified portfolio of resource properties critical to current and future energy production. This includes natural gas for LNG, base metals including copper and zinc, platinum group elements, strategic metals including cobalt, and precious metals.
AUREX ENERGY CORP. TRADES ON THE TSX VENTURE EXCHANGE UNDER THE SYMBOL “AURX”.
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Aurex Energy Corp.
Gary Billingsley, President
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