The company entered into a joint venture agreement with Ranier Exploration Texas LLP, a Texas Partnership (“Ranier”), located in Houston whereby TransAmerican committed to fund the leasing of highly prospective oil and gas properties in Willacy County, Texas. All prospects are the product of proprietary three-dimensional seismic. By this agreement, the Company earns twenty percent of all rights to the prospects.
The Company has leased roughly 1000 mineral acres, which covers two drilling ventures named Tenerias North and Paso Real Fields. Both are medium depth prospects, 8000-9000’, and are prospective in multiple Miocene Sand pays. Ranier’s geologists and engineers estimate the potential reserves for Tenerias North at 6.5 Billion Cubic Feet of natural gas and 50,000 bbls of condensate and for Paso Real a reserve potential of 5 Billion Cubic Feet of natural gas and 40,000 bbls of condensate.
The Company and Ranier, closed an agreement with Houston based Fortune Exploration whereby Fortune Exploration agreed to re-imburse the Company it’s lease costs and assume all future costs to drill, complete and equip both wells carrying TransAmerican and Ranier for a combined 15% working interest. The potential future net income potential after royalty and production taxes is estimated at USD $2,250,000 to TransAmerican’s interest.
