Multi-Corp International purchases production equipment at Cave Pool Property
Tuesday, Dec 18, 2012
LOS ANGELES, Dec. 17, 2012 /PRNewswire/ -- Multi-Corp International Inc. (OTCQB: MULI). ("Multi-Corp" or the "Company") an emerging Exploration and Production Company that is actively acquiring and developing oil and gas assets in North America is pleased announce today, that the Company has purchased from Quad Energy, Inc. all of the production equipment on the 2,800 acre Cave Pool Property. This acquisition includes all of the pump jacks, storage tanks, batteries and existing inventory of oil on the 37 existing well locations. The Company made payment in the amount of 2 million of its common shares to Quad Energy. This is in addition to the 10 million common shares paid for the 100% W.I. for the 2,800 acres at the Cave Pool Property and concludes the Cave Pool Property acquisitions.
There are currently 32 wells which are capable of producing approximately 40 BOPD with 30 MCF Natural Gas, based on 40 acre spacing and over 100 possible drilling locations based upon 20 acre spacing. Management has currently identified 10 wells that are currently shut-in that will be returned to producing status within the first sixty days of operation. Production should increase by a minimum of 20 BOPD once the 10 wells are placed on production. The Company is expecting to begin its optimization / reworking program in early March 2013.
Company President Robert Baker states, "We are pleased to have acquired from Quad Energy all of the production equipment on the existing 37 wells. This equipment purchase and the 100% W.I. of the 2,800 acre Cave Pool Leases brings the Company to the commencement of our operational phase. The Company will have revenues within 90 days and a secured reserve potential to guarantee production for the long term."
The Cave Pool Unit property covers 2800 acres located within Eddy County, NM. It is located within the prolific Artesia Vacuum Trend – More specifically within the Grayburg Jackson Pool. The Artesia Vacuum Trend play contains thirteen reservoirs with more than 1 MMBO cumulative production. Cumulative production from these 13 reservoirs was 796 MMBO as of 2000. Depths to the top of reservoirs range from 1290 to 4700 ft. This is a mature play, especially within the highly productive San Andres carbonates. Recent development of lower permeability Grayburg sandstones in the Grayburg Jackson reservoir during the mid-1990's has been successful to the point of reversing production decline and is a major focus of current and future development.
Oil PUD reserves of 3M BOE are based on third party reserves on adjoining offset leases (Doral – with 3 leases bordering Cave Pool on SE border) in the Grayburg only. The Cave Pool Unit produces from both the Grayburg and San Andreas formations and therefore credit for reserves on the San Andreas formation are not included
About Multi-Corp International, Inc. (OTCQB: MULI)
Multi-Corp International is an Exploration and Production (E&P) company focused on delivering superior operating and financial results by developing and acquiring oil and gas resources initially in New Mexico and then throughout North America, that are contributing to the country's energy security and vital to the world's health and welfare. The Company operates from its offices in Los Angeles, California.
Source: Multi-Corp International Inc.
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