DALLAS, Sept. 26 /PRNewswire-FirstCall/ -- Westside Energy Corporation (AMEX:WHT), an oil and gas company with operations focused on the acquisition, exploration, and development of natural gas in the Barnett Shale play in North Texas, today announced that it had acquired additional Barnett Shale assets located in Denton, Johnson and Tarrant Counties, Texas. The consideration for the assets purchased is $2 million in cash and 904,000 shares of Westside common stock.
Summary of assets acquired: -- Wells:
-- Producing: 5 (various small working interests)
-- Waiting on Completion: 4 (Kennon #3H, 4H, 5H, & 6H; Johnson
County; 43.75% working interest)
-- Drilling: 1 (Kennon #7H; Johnson County; 43.75%
working interest) -- Leasehold (Gross): 1,400 acres -- Proved Reserves (Net):
-- Producing .6 BCF
-- Undeveloped 11.6 BCF -- Production (Net): 380 MCF/D
Additionally, Westside entered into an $8 million Revolving Note with Knight Energy Group II, LLC on September 20, 2007. Key terms of the Revolving Note are as follows: -- Principal Amount: $8 million. -- Term: Due September 1, 2008. -- Interest Rate: Floating -- LIBOR (30 day) + 5%. -- Security: Unsecured. -- Initial Advance: $2.6 million. -- Use: Development activities; general corporate
purposes. -- Amortization: None. Payoff at end of term. Additional details regarding this new Revolving Note will be included in a Securities and Exchange Commission filing on Form 8K.
Management Comment Douglas G. Manner, Westside's Chief Executive Officer stated, "The addition of these assets to the Westside portfolio significantly increases our reserves and also expands our opportunities for creating additional value for our shareholders. We anticipate a material increase in our production after the fracture stimulation and completion of the Kennon #3H, 4H, 5H and 6H wells in early October. These Johnson County wells are operated by a major independent active in the Barnett Shale. A producing well (not included in the assets acquired) offsetting these wells came on production at an initial rate of over 3 MMCF/D. Funds advanced under the Revolving Note financed the cash portion of the acquisition and the remaining undrawn balance is available for use in our ongoing development and growth efforts. Additionally, we've drilled and cased our fourth and fifth Hill County horizontal wells, which will be fracture stimulated and completed in late October, and are currently moving the drilling rig to our sixth Hill County horizontal drilling location." About Westside Energy Corporation Dallas-based Westside Energy is an oil and gas company focused on exploiting its significant acreage position in the prolific Barnett Shale trend in North Texas. For more information about Westside Energy, please visit the Company's website: http://www.westsideenergy.com/.
Forward-Looking Statements Certain statements in this news release regarding future expectations, plans for acquisitions and dispositions, oil and gas reserves, exploration, development, production and pricing may be regarded as "forward-looking statements" within the meaning of the Securities Litigation Reform Act. They are subject to various risks, such as operating hazards, drilling risks, the inherent uncertainties in interpreting engineering data relating to underground accumulations of oil and gas, as well as other risks discussed in detail in the Company's periodic reports and other documents filed with the SEC. Actual results may vary materially. DATASOURCE: Westside Energy Corporation CONTACT: Sean J. Austin, Vice President and CFO of Westside Energy Corporation, +1-214-522-8990, ext. 1117 Web site: http://www.westsideenergy.com/
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