Moore County, Texas–(Newsfile Corp. – July 23, 2018) – Molori Energy Inc. (TSXV: MOL) (OTC Pink: MOLOF) (“Molori” or the “Company”) is pleased to provide an update regarding its operations in Moore County and Hutchinson County, Texas.
On May 7, 2018, the Company announced the first of two “Letters of Intent” to acquire a 100% working interest in approximately 30,000 acres with access to the Red Cave and other formations. The acreage, located in Moore, Potter, Carson and Hutchinson counties, is HBP (‘held by production‘), and includes 8 currently-producing wells. The agreement calls for the payment of USD $1,700,000 in cash on closing.
On May 22, 2018, Molori announced the second Letter of Intent for the purchase of a 100% working interest in a an additional 5,100 acres in the Red Cave formation. An 81 acre tract included within the proposed purchase is of significant interest because it ajoins property owned by Adams Affiliates, Inc., (Tulsa, Oklahoma), who have successfully drilled more than 50 Red Cave wells in the past three years. The 81 acre tract further offers 18 drill-ready locations. Consideration for this 5100 acres, also HBP, is USD $650,000 in cash, plus 500,000 shares of Molori common stock.
The Company has been actively engaged in discussions with a number of parties concerning the necessary financing to complete the property purchases, as well as to fund a series of development wells, focusing initially upon the 81 acre tract. Molori has stated that its preferred route is either a farm-in or joint-venture arrangement with an industry partner.
Meantime, Molori has also been in active discussions with contract operators with direct experience drilling Red Cave wells. Molori believes that this could help ensure the Company’s success as it moves into the development phase of its Red Cave acreage. Subject to the completion of financing discussions, Molori anticipates being in position to begin drilling on the 81-acre parcel as early as September of this year.
Finally, the Company wishes to further announce that it has initiated a legal challenge against its former operating partner, Ponderosa State Energy, LLC—formerly known as Ponderosa Energy, LLC. Through the challenge, Molori seeks to obtain Ponderosa’s 75% working interest in 3 presently-producing oil and gas leases in Hutchinson County known as the ‘State Leases’. The nature of the dispute involves a 2017 agreement wherein Ponderosa agreed to exchange its 75% interest in the State Leases with Molori provided that Molori agreed to surrender its interest in certain marginal wells and leases also in Hutchinson County. Althouth Molori cannot predict the outcome, it is confidant in its legal position. A successful outcome could result in Molori owing a 100% working interest in the State Leases.
Molori Energy Inc. is an oil and gas company with current operations and development in the Texas Panhandle West Field. The focus of the Company’s exploration and development arm is the underdeveloped Red Cave formation. Molori’s business model is to deliver sustainable growth in shareholder value by focusing on reserves, commercializing and developing discoveries and pursuing selective acquisitions.
Molori’s operating team, based in Houston, Dallas and Moore County, Texas have extensive experience in the oil and gas industry in the Texas Panhandle. The Company believes that the Red Cave represents a significant hydrocarbon-rich formation in a well-developed region. By employing leading-edge exploration and frac techniques, Molori believes that the Company is well positioned to build production and reserves and further benefit from the opportunities that exist in the Texas Panhandle region.
For further information, please visit the Company’s website at www.molorienergy.com or contact
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Cautionary Notes Regarding Forward Looking Statements
This News Release contains forward-looking statements. Forward-looking statements include but are not limited to those with respect to the prices of oil and gas, the estimation of oil and gas resources and reserves, the realization of oil and gas reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, Government regulation of oil and gas operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage and the timing and possible outcome of pending litigation. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget“, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes” or variations of such words and phrases, or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the actual results of current exploration activities, conclusions or economic evaluations, changes in project parameters as plans continue to be refined, possible variations in grade and or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labordisputes or other risks of the oil & gas industry, delays in obtaining government approvals or financing or incompletion of development or construction activities, risks relating to the integration of acquisitions, to international operations, and to the prices of oil & gas. While the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.