Maverick Energy Group Ltd (OTC-MKGP) stock tanked emphatically as it recorded a rise of 35.71% to $0.1900 at the previous close after entering into an agreement. Over the last week, the performance of Maverick Energy (MKGP) stock was 2.87% versus its monthly performance of -24.00%.
Which arrangement MKGP has gone into?
Maverick Energy (MKGP) announced last week that it has reached an agreement to Complete and Recomplete Five (5) Wells in Cass and Marion Counties, Texas.
- MKGP will pay for 100% of the completion and recompletion of each of the five allocated wells, according to the conditions of the agreement.
- Maverick Energy will also receive a half stake in three of the currently producing wells and a 70% interest in the wells with uncompleted delivery zones (Duc’s) under the terms of the agreement.
- At a depth of around 9,000 feet, each of the five wells produces from the prolific Cotton Valley Formation.
- The first two recompleted wells are currently producing 180,000 cubic feet of gas and 10 barrels of condensate per day.
- MKGP believes that with some regular downhole treatment, the daily production from these first two wells might increase to over 700,000 cubic feet of gas and 50 barrels of condensate (oil).
- The third well is a horizontal well that is currently producing a little amount of gas and condensate.
- Maverick Energy believes that a simple “wipe out” will increase production to more than 300,000 cubic feet of gas and 25 barrels of condensate per day.
- Cotton Valley Zones that were bored, cased, and logged but never delivered will be the climax of the fourth and fifth wells.
- Maverick Energy believes that if the project goes through, each well could produce more than 1 million cubic feet of gas and 100 barrels of condensate each day.
What is the future of MKGP?
Maverick Energy (MKGP) will be the well administrator, with the current owners acting as agreement administrators for day-to-day operations. Work on these wells is expected to begin immediately, according to MKGP.