Category: Uncategorized
- Published: 29 November -0001
LAS VEGAS, Mar 30, 2004 - Lexington Resources, Inc. (LXRS) (the "Company") announces that it has successfully optioned a farm out lease of approximately 960 acres in 3 sections of the South Lamar CBM Prospect ("Coal Bed Methane") located in Eastern Hughes County, on the western edge of the Arkoma Basin in the State of Oklahoma. The South Lamar is amongst the most prolific gas bearing regions and has already attracted major developers. This brings to a total more than 4,050 acres of land under option or lease by the Company for CBM development that could support approximately 30 gas wells. The target zone of potential gas drilling is the Hartshorne Coal and possibly the Caney Shale zone found somewhat deeper. This lease includes access to all gas bearing zones with the exception of the Jefferson/Cromwell zones at approximately 3,400 to 3,500 feet and provides a 78.5% Net Revenue Interest and a 100% Working Interest. Additional acreage as part of the farm out may be acquired upon exercise of the option.
The Company plans drilling of horizontal wells into the coal seams and/or gas zones located on this prospect. The area is well accessed, lying south of Oklahoma City and has good access by road and to existing gas pipelines. Larger CBM firms that are known to be acquiring drilling leases and drilling CBM wells in the area are acquiring lands in very close proximity to the location of the Company's newly optioned property.
Based on data that indicates this prospect contains the target producing zones, the South Lamar Prospect could increase current drillable inventory by 8 to 10 CBM wells. Lexington Resources is in negotiations for additional tracts of acreage capable of CBM or other gas production in Oklahoma's Arkoma basin.
About Domestic Coal Bed Methane Gas Production: Methane (natural gas), occurs in association with coal, the Nation's most abundant fossil fuel resource. Conservative estimates (Rice, 1997) suggest that in the United States more than 700 trillion cubic feet (TCF) of coal-bed methane exists in place, with perhaps 100 TCF economically recoverable with existing technology. Coal bed methane now accounts for about 7.5 percent of total natural gas production in the United States. Exploration costs for coal-bed methane are typically low, and the wells are cost-effective to drill. (Source: USGS, website: http://energy.usgs.gov)
About Lexington Resources, Inc.: Lexington Resources, Inc. is a natural resource exploration company engaged in the acquisition and development of oil and natural gas properties in the United States. The company currently has completion and development stage gas prospects in progress. Ultimately, the Company expects to weight its development initiatives towards gas production.
For further information: www.lexingtonoilandgas.com
SAFE HARBOR STATEMENT
THIS NEWS RELEASE MAY INCLUDE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF SECTION 27A OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE UNITED STATES SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED, WITH RESPECT TO ACHIEVING CORPORATE OBJECTIVES, DEVELOPING ADDITIONAL PROJECT INTERESTS, THE COMPANY'S ANALYSIS OF OPPORTUNITIES IN THE ACQUISITION AND DEVELOPMENT OF VARIOUS PROJECT INTERESTS AND CERTAIN OTHER MATTERS. THESE STATEMENTS ARE MADE UNDER THE "SAFE HARBOR" PROVISIONS OF THE UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND INVOLVE RISKS AND UNCERTAINTIES WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE IN THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN."
SOURCE Lexington Resources, Inc.
CONTACT:
North America, Marcus Johnson, 1-888-848-7377, or +1-702-382-5139, or fax, +1-702-385-1202, or Europe, Richard Elliot-Square, +41-43-888-67-00, or fax, +41-43-888-67-09, both for Lexington Resources, Inc.
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