TX Holdings Inc. announced today the formation of a strategic alliance with Salt Lake City-based Hewitt Energy Group Energy, LLC to pursue energy-related activities in Kansas, Oklahoma and Texas.
As part of this alliance, Hewitt Energy Group will contribute projects, each with reserves of 1 to 4 million barrels of infield engineered reserves in exchange for project funding and other considerations. Hewitt will also provide ongoing consulting services, digital interpretive analysis of these and other project areas currently being generated from ongoing research activities and project oversight to implement production activities in the mutual areas of focus.
For its part, TX Holdings will provide the needed capital to implement production in these and other operations. The agreement is subject to the Company raising the necessary capital over the required period of the projects.
The companies will focus initially on the opportunities in Kansas. Shallow drilling objectives of 3,000 to 5,000 feet, favorable lease terms, excellent per well average reserves and proximity to general energy infrastructure create an excellent environment for growth.
Historically, Kansas ranks fifth among states in the United States in cumulative production with over 30 trillion cubic feet of gas and over 6.6 billion barrels of oil produced to date. TX Holdings will begin work in central Kansas, where significant oil and gas reserves remain.