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TX Holdings, Inc. (“TX” or the “Company”) is a publicly-traded oil and gas production company that is in the exciting development process.
We are actively acquiring producing and non-producing shallow, low risk oil and gas leases in the Abilene area of West Texas. TX steadfastly continues to concentrate on acquisitions in the Eastland and Callahan County regions of West Texas, which is located between Fort Worth and Midland.
Presently, we are focusing our efforts strictly on these areas as we want to maximize the yield and existing resources in order to optimize the time and money spent on developing production from our leases.
Current Strategy:
Our absolute, overriding and immediate priority is to commence the production process for our existing wells. We have put in place the necessary work program to meet the Texas Railroad Commission requirements. Over the next period we will develop a well by well strategy to sequence the coming on line of each individual well. When this program is bedded down, we will start to install a fracturing and flooding schedule to maximize the production output. Only when we have achieved our aims in these areas will we start to further our long term objectives.
Future Objectives:
Pursuant to the Company’s business model, it is our desire to continue to expand our acquisition and development programs at the same high levels of density per acre in the immediate future. The strict criteria that TX has developed for itself regarding the acquisition standards of the leases are as follows:
- The potential leases must have existing wells and large, undeveloped non-depleted shallow reserves.This ensures that they are good candidates which fall under our requirements of being capable of producing oil in the short term once we have completed the necessary workovers or recompletions.
- The potential leases should ideally have approximately 75-80% of undeveloped acreage which will fall into our set guidelines. We will then utilize low-cost, low-risk infield drilling to facilitate the development program.
- All required leases have stacked, multiple shallow zones with an average well depth of 440 feet. These stringent requirements have allowed us to have multiple zones producing oil at once and enable us to do so in a more financially viable way than drilling the more traditional deeper wells.
