Maverick Signs Participation Agreement to Complete Multiple Wells in Seven Texas Counties

Rhea-AI Summary

Maverick Energy Group (OTC PINK:MKGP) announced a Participation Agreement to recomplete three existing wells in Gonzales and Lee County, Texas. Maverick will fund 100% of the recompletion costs and retain a 75% working interest. The first well, previously producing around 10 barrels of oil, is expected to significantly increase production following a new horizontal drilling. The project aims to establish a core area for Maverick at a lower cost than traditional methods, avoiding dilution of shares. A larger acquisition project will be announced soon.

Positive

• Signing of Participation Agreement to recomplete three existing wells.
• Maverick retains a 75% working interest in the wells.
• Potential to significantly increase production from current 10 barrels.
• No dilution of common shares required for the transaction.

Negative

• None.

ST AUGUSTINE, FL / ACCESSWIRE / November 30, 2022 / Maverick Energy Group, Ltd. (OTC PINK:MKGP) is pleased to announce the signing of an agreement to recomplete three existing wells located in Gonzales County and Lee County, Texas.

Maverick has signed a Participation Agreement with an established operator in the Giddings Field located in the Texas counties of Fayette, Lee, Gonzales, Burleson and Bastrop comprising over 5,000 acres held by production, over 100 leases and in excess of 25 wells. Additional wells as part of the Participation Agreement are in Atascosa County and Frio County, Texas.

Basic terms of the Agreement are that Maverick will pay 100% of the horizontal recompletion cost of the initial three existing wells and receive a 75% working interest in each. The first well to be re-entered was previously drilled to 9,170 feet true vertical depth and horizontally to 11,378 feet measured depth. The well was fracked with over two million pounds of sand and, due to a mechanical failure, over two thousand feet of horizontal section was lost. The well currently produces approximately 10 barrels of oil which management believes is well below its potential with successful horizontal drilling. The plan is to partner with USR Resources to "kick off" above the existing horizontal leg and drill a new horizonal section, which is estimated to take two weeks to complete at which time the well should be producing at its full potential.

Wells in the Giddings Field will primarily target the Austin Chalk, Eagle Ford, Buda, and Georgetown formations. Wells in Frio County and Atascosa County will primarily target the Olmos formations. Once the first three wells are completed, Maverick will have the option on a "drill to earn" basis and, upon the same terms, to recomplete the balance of the existing wells.

James McCabe, President and CEO of Maverick Energy Group, Ltd. Commented, "We believe that this is a major opportunity for Maverick to establish a core area with existing wells and production at a fraction of the cost of traditional leasing, exploration, and development. In addition, this transaction requires no further dilution of our common shares." Mr. McCabe continued, "With guidance and input from our recently formed Technical Advisory Board and USR Resources, this project is the first of two planned projects to be announced this week. The second project to be released is a larger acquisition the Maverick team is excited to share once final approval from both parties is completed."

About Maverick Energy Group

Maverick Energy Group LTD is a crude oil and natural gas acquisition, production, exploration, and horizontal drilling development company focusing on select areas of North America. Maverick believes that its license to patented and proprietary horizontal production enhancement technologies facilitates the rapid accumulation of valuable oil and gas assets, while at the same time greatly improving the rate of production and lifetime potentialof these properties.

Company Website: www.maverickeg.com

Safe Harbor Statement

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify thesestatements by the use of the words "may," "will," "should," "plans," "expects," "anticipates," "continue," "estimates," "projects," "intends," and similar expressions. Forward-looking statements involve risks and uncertainties that could cause results to differ materially from those projected or anticipated. These risks and uncertainties include, butare not limited to, the Company's ability to successfully execute its expanded business strategy, including by entering into definitive agreements with suppliers, commercial partners and customers; general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing various engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technical advances and delivering technological innovations, shortages in components, production delays due to performance quality issues with outsourced components, regulatory requirements and the ability to meetthem, government agency rules and changes, and variousother factors beyond the Company's control.

CONTACT:

Maverick Energy Group, Ltd.
investors@maverickeg.com

SOURCE: Maverick Energy Group, Ltd.

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https://www.accesswire.com/729489/Maverick-Signs-Participation-Agreement-to-Complete-Multiple-Wells-in-Seven-Texas-Counties

FAQ

What recent agreement did Maverick Energy Group (MKGP) sign?

Maverick Energy Group signed a Participation Agreement to recomplete three existing wells in Texas.

How much is Maverick Energy Group investing in the well recompletion?

Maverick will pay 100% of the horizontal recompletion costs for the initial three wells.

What is the expected outcome for the wells after recompletion?

The wells are expected to produce significantly more oil than the current output of approximately 10 barrels.

Will Maverick Energy Group issue more shares for this project?

No, the transaction will not require any dilution of Maverick's common shares.

What formations will the wells target in Maverick's new project?

The wells will primarily target the Austin Chalk, Eagle Ford, Buda, and Georgetown formations.