Maverick Energy Group (OTCMKTS:MKGP) Stock Soars After Acquisition News
Crude oil and natural gas production, exploration, and drilling company, Maverick Energy Group (OTCMKTS:MKGP) is focusing on select areas of North America. The company believes that access to proprietary horizontal production and patented technology facilitates in quick accumulation of vital oil and gas assets. It also improves the rate of production besides the lifetime potential of the assets.
Market Stats
On Tuesday, MKGP stock soared 21.67% to $0.0730 with 388K shares, compared to its average volume of 118K shares. The stock moved within a range of $0.0600 – 0.0730 after opening trading at $0.0600.
Maverick Energy Group Ltd. Announces Signing of LOI to Acquire Northeast Texas Assets July 20, 2022
James McCabe, President, and CEO of Maverick Energy Group Ltd on July 20, 2022, announced that the company has implemented a Letter of Intent with Gravitas Resources Corporation and Pegasi Energy Resources Corporation. Maverick will acquire 100% working interest in some oil and gas assets in Cass Counties and Marion in Texas.
The acquisition includes twenty-two wellbores, surface, and sub-surface equipment, and about 4,000 net mineral acres. Presently, production is about eighteen barrels of oil per day as well as 165 MCF per day. Currently, the revenue is about $85,000 per month. This comprises about $50,000 from oil sales and about $35,000 from gas sales.
Maverick will be paying a corporate promissory note of $1,000,000, five percent interest in the net monthly operating revenues, and one million shares of fully paid, restricted 144, and non-assessable Maverick common stock on closing.
Post closure, the acquisition will give steady cash flow with significant upside from finishing drilled un-completed, re-working existing wells as well as targeting behind pipe reserves. Furthermore, it will target stranded reserves by sidetracking vertical wells with horizontal drain holes, harnessing the USR.
Maverick Begins Work to Recomplete First of Five Wells in Cass and Marion County, Texas
Maverick Energy Group Ltd on May 10, 2022, announced starting of work for recompleting the Haggard B #1 located in Marion County, Texas.
The first of five wells, Haggard B #1 is being completed by Maverick, which will earn an undivided fifty percent working interest. It will also be the operator of the record for this well. The well is confirmed to be delivering about 180 thousand cubic feet of gas with two barrels of condensate a day. Maverick is estimating doubling the existing products through the reworked plan. Its technical team will be overseeing the recompletion process.
James McCabe, President, and CEO of Maverick Energy Group said that the successful rework of Haggard B #1 will add meaningful cash flow and start a continuous development program.
Maverick on April 28, 2022, announced the signing of an agreement for completing and recompleting five wells in Texas. Maverick will be paying for 100% Completion and Recompletion of each of the five designated wells. The company will be getting 50% interest in three wells and 70% interest on uncompleted producing zones. All wells produce from the prolific Cotton Valley Formation at a depth of about 9,000 feet. The first two wells for recompletion are producing about 180,000 cubic feet of gas as well as 10 barrels of condensate per day.
Traders Corner
MKGP stock is trading below the 50-Day and 200-Day Moving averages of $0.1039 and $0.2028 respectively. However, the stock is trading above the 20-Day moving average of $0.0660.
