Bayport International Holdings Inc. (OTC: EXTO) provided an update for its Peck A and Peck B oil lease in Gaines County, Texas.
The Peck "A" lease covers 320 acres, and in December 2002 had a production rate of 7,256 barrels per month. This first well is expected to resume producing from the existing 11,000 foot depth. The second well will be re-worked at the 3,500 foot depth to test the San Andres zone. Wells directly adjacent to the south of this property have produced 400 barrels of oil per day from the San Andres zone, although same in no way guarantees the same production from the wells in which the company has an interest.
As of April 10, the operator already has equipment on ground and is confident to have the pumpjack in place in two weeks. Logs will be available as soon as possible.
The drilling operator is CTL Oil and Gas, an independent producer of crude oil and natural gas, licensed by the State of Texas.
The first well within the Peck A lease produced 92,536 barrels from September 2002 to November 2006, before becoming inactive for non-operational reasons. The northeast section of the area contains a gas gathering line.
The company entered into an agreement with Rio Rancho Oil & Gas Resources for the lease in Gaines County in July 2011. Pursuant to that agreement, Bayport acquired a 3.5% leasehold; a non-participating working interest in wells obtained by Rio Rancho through leasehold. The nonparticipating working interest does not require that the company fund, in any way, production of the wells, only receive revenues.
Offset production leasehold has become a major source of income and exploration in the oil and gas industry. Bayport and Rio Riata Oil & Gas Resources own an additional 160 acres within the area. Rio Riata are in various stages of acquiring additional offset production properties that will benefit the relationship between both parties. Details of the agreement between Bayport and Rio Riata will be provided.
Bayport International Holdings Inc. is primarily focused on precious metals, rare earth, and oil and gas ventures. The company is based in Las Vegas.