Stockholm July 12, 2013 ( Aktietorget: COMQ )
Commodity Quest : Commodity Quest acquires “Concord Dome Oilfield ”
Commodity Quest ‘s wholly owned subsidiary, COMQ Services LLC , has today signed an agreement to purchase Concord Dome Oilfield ( CDO) . CDO is a 500,000 m2 large producing oil field in Anderson County, Texas . Commodity Quest takes over 100 % of the field and Benchmark Oil & Gas is operator.
The purchase amount is confidential , but the acquisition is fully financed by equity and Commodity Quest does not have to seek external funding .
We expect initial production of approximately 20 barrels / day , with a possible increase of 40-60 barrels / day through a smaller drill programs on three existing oil wells.
In the field, there are also 12 studied sources that require further investigation to determine the total potential.
COMQ Services will have 100 % working interest and 84% net revenue interest .
” It is gratifying to be able to acquire a producing oil fields and increase our equity and net worth without diluting our shareholders. We have negotiated for a long time and have achieved good condition .
This acquisition gives us a strong increase in our oil reserves and doubles probably our short / medium-term production targets including Benchmark Oil & Gas.
CDO located a scant two -hour journey from Orange field ( Benchmark Oil & Gas) and has good synergy with this . Overhead costs of the Benchmark Oil & Gas will not increase , and production will thus be highly cost-effective .
Investments will be made with regard to infrastructure , workovers and new wells , which will increase daily production and is expected to be profitable later this year.
The field began producing in 1942 and had an initial production per oil well at approximately 200 barrels / day. Several other sources of oil was above and even as high as 340 barrels / day. Most sources were plugged early due to low oil prices .
We will now review the non-producer and studied sources to possibly get back into production. Our bank has responded favorably to finance this.
We are reviewing the possibility of selling the CDC to Benchmark Oil & Gas at a later stage . “Says Pål Mörch , president of Commodity Quest AB (publ)