NYTEX Energy Holdings, which has already assembled an impressive portfolio of oil and gas operations in Texas, reported today alongside their operating subsidiary, NYTEX Petroleum, Inc., that the company has acquired 5,325 leasehold acres in the Texas Permian Basin via a JV that also includes industry veteran-founded Greeheyco, Inc.
The JV has NYTE acting as the operator and there is abundant potential to drill as many as 33 wells on the target acreage, having as their objective the rich San Andres Formation. Particularly bullish about this acreage, NYTE, which currently holds a 10% WI, is currently in rigorous negotiations with several potential partners to increase their ownership position.
Given that the target acreage is comprised of existing fields where heretofore only vertical wells have been drilled for several decades, NYTE is confident that some horizontal work will prove up the abundant potential of the acreage and translate directly into shareholder ROI. Horizontal frac jobs in the San Andres Permian have shown initial production rates well over 200 bbls/day with high-end estimated ultimate recovery values, making this latest acquisition by NYTE one for investors to keep a close eye on as it develops.
President and CEO of the Dallas-based NYTE, Michael Galvis, underscored the extremely detailed engineering and analytical work done by the company on the San Andres Formation geology this year, asserting that, with the help of their skillful drilling and production team, the company is now poised to generate some major shareholder upside. Galvis further pointed out that the San Andres is anticipated as evolving into a core asset for the company's portfolio of operations and a highly-scalable one at that, allowing the company to strike hard and fast across a panoply of Permian targets they have identified.
Some serious footprint action here for a young E&P like NYTE, which has made a name for itself already through judicious exploitation of low-risk, high return rate infrastructure in shallow carbonate reservoirs.
More info on NYTEX Energy Holdings is available at NytexEnergyHoldings.com
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