Maverick Energy Group Ltd. Announces Signing of LOI to Acquire Northeast Texas Assets July 20, 2022

Rhea-AI Summary

Maverick Energy Group (OTCMKTS:MKGP) announced the execution of a Letter of Intent to acquire oil and gas assets in Marion and Cass Counties, Texas. This acquisition includes 22 wellbores, surface and sub-surface equipment, and approximately 4,000 net mineral acres, with current production of 18 barrels of oil and 165 MCF of gas daily. Maverick plans to pay $1 million via a corporate promissory note, a 5% interest in net monthly revenues, and 1 million shares of common stock. The deal aims to enhance cash flow and increase production through advanced recovery technologies.

Positive

• Acquisition of 100% working interest in significant oil and gas assets.
• Current production of approximately 18 barrels of oil and 165 MCF of gas per day, generating $85,000 monthly revenue.
• Strong potential for cash flow increase through completion of DUC wells and other advanced recovery techniques.

Negative

• The deal involves significant financial commitments including $1 million promissory note and 1 million shares, potentially diluting shareholder value.
• Dependence on successful integration and execution of enhanced production technologies adds operational risk.

ST AUGUSTINE, FL / ACCESSWIRE / July 20, 2022 / James McCabe, President and CEO of Maverick Energy Group, Ltd. (OTCMKTS:MKGP) ("Maverick"), an independent oil and gas company, announced today that Maverick has executed a Letter of Intent with Pegasi Energy Resources Corporation and Gravitas Resources Corporation.

As stated in the executed LOI, Maverick will acquire 100% working interest in certain oil and gas assets in Marion and Cass Counties, Texas.

The acquisition includes 22 wellbores, related surface and sub-surface equipment and approximately 4,000 net mineral acres. Current production is approximately 18 barrels of oil per day and 165 MCF per day. Current revenue is approximately $85,000 per month, comprising approximately $50,000 from oil sales and $35,000 from gas sales.

At closing Maverick will pay the following consideration:

1. A corporate promissory note in the amount of $1,000,000;
2. A five percent interest in the net monthly operating revenues generated from the acquired assets;
3. 1,000,000 shares of fully paid, restricted 144 and non-assessable Maverick common stock.

When closed, this acquisition will provide a steady cash flow with an attractive upside from completing drilled un-completed (DUC) wells, re-working existing wells, targeting behind pipe reserves and targeting stranded reserves by sidetracking vertical wells with horizontal drain holes using the USR technology.

About Maverick EnergyGroup

Maverick Energy Group, Ltd is a crude oil and natural gas acquisition, production, exploration, and horizontal drilling development company focusing on select areas of North America. Maverick believes that its access to patented and proprietary horizontal production enhancement technologies facilitates the rapidaccumulation of valuable oil and gas assets, while at the same time greatly improving the rate of production and lifetime potentialof these properties.

Company Website: @www.maverickeg.com

Safe HarborStatement

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by the use of the words "may," "will," "should," "plans," "expects," "anticipates," "continue,""estimates," "projects," "intends," and similar expressions. Forward-looking statements involve risks and uncertainties that could cause results to differ materially from thoseprojected or anticipated. These risks and uncertainties include, but are not limited to, the Company's ability to successfully execute its expanded business strategy, including by entering into definitive agreements with suppliers, commercial partners, and customers; general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing various engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technical advances and delivering technological innovations, shortages in components, production delays due to performance quality issues with outsourced components, regulatory requirements, and the ability to meetthem, government agency rules and changes, and variousother factors beyond the Company's control, all as set forth in the risk factors stated in Maverick's Regulation A offering statement on Form 1-A.

CONTACT:

Maverick Energy Group, Ltd.
investors@maverickeg.com

SOURCE: Maverick Energy Group, Ltd.

View source version on accesswire.com:
https://www.accesswire.com/709201/Maverick-Energy-Group-Ltd-Announces-Signing-of-LOI-to-Acquire-Northeast-Texas-Assets-July-20-2022

FAQ

What assets is Maverick Energy Group acquiring?

Maverick Energy Group is acquiring oil and gas assets in Marion and Cass Counties, Texas, including 22 wellbores and approximately 4,000 net mineral acres.

What is the total consideration for the acquisition by MKGP?

Maverick will pay a total consideration of $1 million via a corporate promissory note, along with a 5% interest in monthly operating revenues and 1 million shares of common stock.

How much revenue does Maverick currently generate from the acquired assets?

The current revenue from the acquired assets is approximately $85,000 per month, which consists of $50,000 from oil sales and $35,000 from gas sales.

What are the expected benefits of the acquisition for MKGP?

The acquisition is expected to provide steady cash flow and increase revenue potential through the completion of drilled but uncompleted wells and other recovery techniques.