ASHLAND, KY--(Marketwire - 12/21/09) - TX Holdings, Inc. (OTC.BB:TXHG), an oil and gas operator and exploration company, announces its current corporate operations update and outlook for the future.
TX Holdings' objective is to develop oil and gas fields. In the Texas area the Company has acquired working interests on two (2) leases with significant recoverable reserves that were under developed in the 1970s due to oversight and antiquated extraction methods used during the original development of the wells at that time. Most of these reserves are now accessible and identifiable with modern production methods using high-tech data accumulation and analysis capabilities.
The Company currently owns a 75% working interest on its 320-acre Parks Lease located in Callahan County, Texas. The reserve report on the Parks Lease provided to the Company by W.A. Alexander, Jr. indicates seven (7) million barrels of recoverable oil. TX Holdings is aggressively pursuing a reactivation program on the lease that presently has ten (10) producing oil wells and two (2) injector wells in operation. This leaves three (3) wells on the Southern portion of the lease and seven (7) wells on the Northern portion of the property remaining to be activated. The Company is currently evaluating the wells in various zones to optimize production.
In addition to the Parks Lease, TX Holdings has acquired an 8.5% working interest on the 247-acre Contract Area 1 Lease located in Eastland County, Texas. The reserve report for Contract Area 1 indicates proven undeveloped reserves of 36 million bbls of oil. The property currently has twenty-eight (28) producing and four (4) injector wells in operations. TX Holdings is currently working with the new operator to develop a plan to optimize the production. The operator is considering a water-flood method to increase the production while aggressively planning a 50-well drilling program for 2010.
It is TX Holdings' continued objective to develop the fields that the Company currently has working interests in while continuing its research for additional prospects which meet the profile that management has identified. The Company's ongoing commitment to increase shareholder value through merger and acquisitions and joint venture opportunities has resulted in discussions with several significant acquisition candidates that could provide TX Holdings with exponential growth and positive outlook for 2010.
TX Holdings would also like to thank Frank Shafer for his hard work and dedication as our Investor Relations Manager. We also appreciate the shareholders for the loyalty and patience they have demonstrated over the years. We wish all of our shareholders Happy Holidays and a Prosperous New Year!
Safe Harbor Statement under the Private securities Litigation Reform Act of 1995: The statements contained herein, which are not historical, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements including, but not limited to, certain delays beyond the Company's control with respect to market acceptance of new technologies, products and services, delays in testing and evaluation of products and services, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
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