Borger, Texas--(Newsfile Corp. - October 26, 2017) - Molori Energy Inc. (TSXV: MOL) (OTCQB: MOLOF) ("Molori" or the "Company") is pleased to announce the signing of a definitive agreement to secure a 75% working interest in certain oil and gas leases, known formally as the "Red Cave Leases" in District 10, Texas. The acquisition of these leases, covering 11,000 acres with access to Red Cave, and with access to other formations, is a key milestone of Phase 1 of Molori's development plan.
Phase 1 of Molori's development plan includes the acquisition of the Red Cave Leases, the identification of appraisal well locations upon the Red Cave Leases and the drilling of those appraisal wells. While engaged in Phase 1, the Company has already identified, and has been actively pursuing 40,000 additional acres, with access to Red Cave and other prospective formations.
Within its Phase 1 commitment, Molori has secured both operatorship and a 75% working interest in its previously-announced M17 Well. Molori has been strengthening its operational staff and technical team in order to be able to perform all services as required for operating the M17 Well and the Red Cave Leases.
The acquisition of this substantial 11,000 acre package, gaining operational control, and the doubling of Molori's interest in its most prolific leases, production and reserves as announced on October 17th, brings Molori closer to realizing its goal of becoming a fully-integrated oil and gas exploration and production company.
Over the past 6 months, Molori and its partner have invested over $400,000 in engineering, geological and geophysical studies in order to fully assess Red Cave acreage and field development. This effort has included digitizing over 300 well logs from previously drilled wells that penetrated, but did not access the Red Cave. This exhaustive study has provided invaluable data, enabling the Company to prioritize the first 200 potential well locations.
Over the next 6 months Molori will spend USD $3 million in the evaluation and appraisal drilling of the Red Cave Leases. Molori plans to drill eight or more wells on this new acreage, following which it expects to table the next stage development plan for Phase 2, capitalizing upon the areas with the best pay and highest value targets.
Commented Joel Dumaresq, CEO of Molori, "The acquisition of this expansive land package is the result of many months of work, evaluation and negotiation. With the recent commercial success of the M1 Well on our existing acreage, we have decided to focus our exploration efforts and capital on this prospective new acreage as its sheer size provides us with the greatest opportunity to add significantly to our reserves."
As consideration for securing the 75% working interest, Molori has agreed to an upfront payment of USD $250,000 for the leasehold costs, as well as a commitment under Phase 1 to spend a minimum of USD $3 million on "drilling costs" on the Red Cave Leases. Drilling costs are defined to include geological & engineering services, drilling and development.
Further commented Dumaresq, "As excited as we are with securing these 11,000 acres, we are determined to secure as much additional Red Cave acreage as possible. With several hundred potential well locations now secured, and with full control over our future as operator, we are extremely excited about what the next two years hold for Molori and our shareholders".
Molori Energy Inc. is an oil and gas production company with current operations in the Texas Panhandle West Field. The Company presently owns a 25 percent working interest in certain leases located in the bifurcated Texas panhandle, operated by its Texas-based partner. Molori's business model is to deliver sustainable growth in shareholder value by focusing on exploiting its existing reserves, commercializing and developing discoveries and pursuing selective acquisitions.
Molori's operating team, based in Borger, Texas have extensive experience in the oil and gas industry in the Texas Panhandle. The Company believes that the area represents a significant hydrocarbon basin in a well-developed region. By employing leading edge exploration techniques, Molori believes that the Company is well positioned to increase its production and reserves and further benefit from the opportunities that exist in the Texas Panhandle region.
Director of Communications
Molori Energy Inc.
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This News Release contains forward-looking statements. Forward-looking statements include but are not limited to those with respect to the prices of oil and gas, the estimation of oil and gas resources and reserves, the realization of oil and gas reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, Government regulation of oil and gas operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage and the timing and possible outcome of pending litigation. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases, or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the actual results of current exploration activities, conclusions or economic evaluations, changes in project parameters as plans continue to be refined, possible variations in grade and or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labor disputes or other risks of the oil & gas industry, delays in obtaining government approvals or financing or incompletion of development or construction activities, risks relating to the integration of acquisitions, to international operations, and to the prices of oil & gas. While the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.