NWTR: Adding 1,520 acres to Oklahoma properties with 106 potential production wells. Increasing price target to $2.00 a share.
By Ian Gilson, CFA
New Western Energy (OTC BB:NWTR) has completed the acquisition of 8 oil and gas leases totaling 1,520 acres in Rogers County, OK. This includes 106 oil wells and 8 disposal wells. The properties include 950 contiguous acres, of which a full 640 acre section has proven oil and gas formations, and has a complete gas gathering system.
The properties cover the same formations as the Glass lease and the Phillips lease also owned by New Western Energy. We are assuming the same reserve ratio per acre for the acquisitions as we have for the other leases.
The company intends to develop a plan of which wells should be refurbished. The structures will be mapped so that the reservoir(s) can be pressurized by water flooding to maximize oil production. We have not included wells on these properties in our forecasts.
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