NMEX Clarifies Ownership in West Lenapah Gas Project

Rhea-AI Summary

Northern Minerals & Exploration Ltd. (OTC PINK:NMEX) announced on April 13, 2021, an agreement to increase its ownership in Calihoma Partners LLC, which possesses 60% of the West Lenapah Gas Project. NMEX can raise its stake by an additional 27% through capital contributions. The project spans 40,000 gross acres with 86 wellbores, currently producing 250 to 300 MCF of natural gas daily. Plans include bringing 15 additional wells into production, potentially achieving total output of 1000 to 1500 MCF daily by year-end.

Positive

• Increase in ownership of Calihoma Partners LLC up to 27%, enhancing control over the West Lenapah Gas Project.
• Projected increase in gas production from 250-300 MCF to 1000-1500 MCF per day by the end of 2021.

Negative

• None.

SALT LAKE CITY, UT / ACCESSWIRE / April 23, 2021 / Northern Minerals & Exploration Ltd. (OTC PINK:NMEX) entered into an agreement to increase its ownership percentage of Calihoma Partners LLC. on April 13, 2021. Calihoma Partners LLC owns 60% of the West Lenapah Gas Project.

NMEX has the right to acquire/increase its ownership up to an additional 27% with capital contributions. That is the before payout percentage that would be the basis for any distributions to Calihoma members. The after payout percentage would be a little over 56%. With the remaining funding coming from another source, then NMEX after payout percentage would be no less than 38%.

The following provides information on the West Lenapah Natural Gas Project in Nowata County located in Northeastern Oklahoma:

West Lenapah Natural Gas Project:

The West Lenapah Gas Project is a joint venture project to operate, produce and develop a natural gas asset covering approximately 40,000 gross acres, and 22,500 net acres of largely contiguous leasehold and 1200 miles of associated gathering lines. A total of 86 wellbores are on this acreage of which currently 25 are producing 250 to 300 MCF of natural gas per day.

The Natural Gas Reserves allocated for the West Lenapah Gas Project are estimated to be 8.3 BCF of proved developed producing, proved developed non-producing, proved behind pipe Mississippian and proved behind pipe coal seam gas. Future Net Cash Flow to 100% of the working interest undiscounted is $8,824,500.

The short-term plans over the next three months are to rework and bring into production approximately 15 more gas wells in the West Lenapah area, which is projected to add an additional 500 MCF per day and by the end of 2021 plans are to be operating and producing a total of 60 wells producing between 1000 and 1500 MCF per day.

About NMEX:

Northern Minerals & Exploration ("NMEX") is an emerging publicly traded company focused on oil and gas exploration & production, gold & silver exploration in Nevada & real estate development projects in Mexico.

Management is very optimistic about the future of NMEX as it is evaluating many opportunities for growth and expansion of the Company.

Contact: Noel Schaefer
Phone: 801-885-9260
Email: cerronrs@msn.com

Forward Looking Statements: Statements which are not historical facts contained in this release are forward looking statements that involve risks and uncertainties, including but not limited to, the effect of economic conditions, the impact of competition, the results of financing efforts, changes in consumers' preferences and trends. The words "estimate," "possible," "seeking," and similar expressions identify forward-looking statements, which speak only to the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, because of new information, future events, or otherwise. Future events and actual results may differ materially from those set forth herein, contemplated by, or underlying the forward-looking statements. The information herein is subject to change without notice. Northern Minerals & Exploration Ltd. shall not be liable for technical or editorial errors or omissions contained herein.

SOURCE: Northern Minerals & Exploration Ltd.

View source version on accesswire.com:
https://www.accesswire.com/642015/NMEX-Clarifies-Ownership-in-West-Lenapah-Gas-Project

FAQ

What is the ownership percentage of NMEX in Calihoma Partners LLC as of April 2021?

Northern Minerals & Exploration Ltd. (NMEX) can increase its ownership in Calihoma Partners LLC up to 27%, which currently owns 60% of the West Lenapah Gas Project.

What is the production capacity goal for the West Lenapah Gas Project by the end of 2021?

By the end of 2021, NMEX aims to operate and produce a total of 60 wells, generating between 1000 and 1500 MCF of natural gas per day.

How many wellbores are currently producing gas in the West Lenapah Gas Project?

Currently, 25 out of 86 wellbores in the West Lenapah Gas Project are producing gas, yielding 250 to 300 MCF per day.

What are the estimated natural gas reserves for the West Lenapah Gas Project?

The natural gas reserves for the West Lenapah Gas Project are estimated to be 8.3 BCF.