Press Release Source: Matrixx Resource Holdings, Inc.
Matrixx Resource Holdings, Inc.: Drilling Update at Sandy Point
Friday March 23, 10:28 am ET
LOS ANGELES, CALIFORNIA--(MARKET WIRE)--Mar 23, 2007 -- Matrixx Resource Holdings, Inc. (OTC BB:MXXR.OB - News), announced today that the Fite No. 3 well at Sandy Point has spudded.
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The Company has been notified by the operator regarding the commencement of drilling the Fite No. 3 well at Sandy Point. Drilling began yesterday and is expected to take approximately 10 days to reach the target depth of 7,000 feet.
The Sandy Point Field, located in Brazoria County, was discovered in 1937, and 60 acres yielded 665,000 BO from the 2nd Frio sand. Also, in the nearby W. Sandy Point Field, the Shepperd No.1 Fite has produced 250,000 BO, and 150 MMCFG, from the 1st and 2nd and 3rd Frio sands.
The Express No.1 Fite re-established production in Sandy Point Field in 2002. The 1st Frio sand has gas-on-oil and the 2nd Frio sand (the main pay in Sandy Point Field) has good oil shows in cuttings and sidewall cores.
3-D Seismic, along with well control, confirm that the Express well discovered a new, productive structure. However, the No. 1 Fite well is located low or flankish on the structure. The objective of the Fite No. 3 well is to drill to the 6,700 to 7,000 depth and find structural advantage on the order of magnitude of 10' to 20' over the No. 1 well. The results should be a 1st Frio gas sand of 10' net pay thickness, and 2nd Frio oil sand of 10' net pay thickness. The recoverables attributable to such a development well are estimated to be 0.4 BCFG and 500,000 BO.
Dry Hole Costs (DHC) of the Fite No.3 are expected to be $445,000 and completion costs attributable to the well are $218,500. Matrixx holds a 10% working interest in the prospect. Matrixx's drilling and completions costs of the well are expected to be approximately $44,500 and $21,850 respectively. Fite No. 3's close proximity to the currently producing Fite No.1 well will provide for the minimal completion costs. Dry hole costs for the Fite No. 3 have already been paid.
Matrixx has remained steadfast in its efforts in acquiring growth and investment opportunities in the oil and gas sector with the intent of providing the Company and its shareholders a much-improved increase in shareholder value. Additionally, the Company is now positioned to aggressively exploit its properties to accelerate cash flow and to provide rapid returns on its investments in the oil and gas sector.
Safe Harbor Statement: This press release contains forward-looking statements as defined in The Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "plan," "confident that," "believe," "scheduled," "expect," or "intend to," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties, and actual results may differ materially from those expressed in any forward-looking statement. Such risks and uncertainties include, but are not limited to, the ability of Matrixx to sell the applicable products and the acceptance of those newly designed products by the market, market conditions, the general acceptance of the Company's products, competitive factors, timing, and other risks described in the Company's SEC reports and filings.
Contact:
Contacts:
Matrixx Resource Holdings, Inc.
Konstantine Tsakumis
Media & Investor Relations
(347) 647-1508
Email: ir@mrhi.net
Website: http://www.mrhi.net
Source: Matrixx Resource Holdings, Inc.
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