MDM Permian, Inc. - Permian Basin/Ft. Worth Basin Acquisitions

Rhea-AI Summary

MDM Permian Inc. (OTC Pink: MDMP) is expanding its portfolio by acquiring up to three additional wells, two in Nolan County and one in Wise County, Texas. The company has engaged MDM Energy, Inc. to operate the Brown and Peacock wells. The Brown #1 well is projected to yield an estimated ultimate recovery (EUR) of 220,000 BO, using slick water fracking techniques. MDM will receive a 10% carried working interest in both wells and a 70% net lease on undeveloped acreage. This expansion aims to enhance production capabilities in the profitable Permian and Ft. Worth Basins.

Positive

• Acquisition of up to 3 wells enhances MDM's operational capacity.
• Projected EUR of 220,000 BO from Brown #1 well indicates significant potential revenue.
• MDM Energy's operational takeover is expected to improve efficiency.

Negative

• None.

Carrollton, Texas, July 20, 2021 (GLOBE NEWSWIRE) -- MDM Permian Inc. (OTC Pink: MDMP) continues to add acreage in the Southern Midland Basin and the Ft. Worth Basin of Texas.

MDM Permian, Inc. today announced the acquisition of up to 3 more wells, 2 in Nolan County (Permian Basin), and 1 in Wise County (Ft. Worth Basin).

We are proud to announce the engagement of MDM Energy, Inc., our operating company, taking over operations of the Brown lease (2 existing wells) in Nolan County. The company will be performing completion operations on the Brown #1, in the Strawn Sands. The well is a few miles from a Strawn field that had produced over 4 million barrels of oil. NuTech Energy Alliance has done computer simulations of the proposed frack and the results indicate favorable production. The simulation suggests an EUR (estimated ultimate recovery) of 220,000 BO. We will be applying a slick water frack with 145,000 lbs. of proppant to stimulate the zone. Work on this well is scheduled to begin later in the month of August after all transfers have been affected. As part of the deal, MDM Permian will receive a 10% carried working interest. As part of the deal, MDM Permian, Inc. will also acquire a farmout for the undeveloped acreage offsetting the Brown #1 well with a 70% net lease.

MDM Energy, Inc. is also taking over operations for the Peacock #1 well in Wise County. This is a Barrnet Shale well with an oily Conglomerate section. MDM Permian will receive a 10% carried working interest in this well that is producing both oil and gas.

About MDM Permian, Inc.:

Based in Carrolton, Texas, MDM Permian, Inc. is a publicly traded energy company with interests in oil and natural gas wells, mineral prospects. The Company’s business plan includes building value through reserves and production in the Permian Basin of Texas. MDM Energy, Inc. (the wholly owned operating subsidiary of MDM Permian, Inc.), has been actively involved in the oil and gas industry since 1981 with offices located in Carrolton, Texas. 

Michael Rafael has 40 years of experience in the oil and gas industry, serving as founder, President and Chief Executive Officer of MDM Energy, Inc.(“MDM”).

Mr. Rafael has been directly involved in the drilling, completion, and operation of over 300 oil and gas projects, primarily in the Illinois Basin, and directly supervises and oversees field operations. Mr. Rafael works directly with contract geologists, petroleum engineers and geophysicists from start to finish.  

For more information about the company, please visit https://www.mdmenergy.com.

Follow us on Twitter: https://twitter.com/mdmpermian

Safe Harbor Act: This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involves risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic business conditions and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements to reflect events or circumstances that may arise after the date of this release.

For additional information, view the company’s website at www.mdmpermian.com or contact MDM Permian, Inc. at (214) 651-9900. 

           

FAQ

What wells is MDM Permian acquiring in July 2021?

MDM Permian is acquiring up to three additional wells, including two in Nolan County and one in Wise County, Texas.

What is the estimated ultimate recovery for the Brown #1 well?

The estimated ultimate recovery (EUR) for the Brown #1 well is projected to be 220,000 BO.

What type of fracking will be used for the Brown #1 well?

A slick water frack using 145,000 lbs. of proppant will be applied to stimulate the Brown #1 well.

What working interest will MDM Permian receive from the new wells?

MDM Permian will receive a 10% carried working interest in both the Brown #1 and Peacock #1 wells.

What is the strategic significance of MDM's new acquisitions?

The acquisitions are strategically important as they enhance MDM's production capabilities in the lucrative Permian and Ft. Worth Basins.