Dallas, Texas -- Gulftex Operating, Inc., announces that it has completed negotiations with Devon Energy Corporation. (NYSE:DVN) Oklahoma City, Oklahoma for additional acreage in the most prolific portion of the core area in the Barnett Shale. Talks were centered on Denton county tracts jointly held with Devon. Gulftex Operating, Inc. is actively drilling and operating wells in Denton County, the core area of the Barnett Shale in Texas. Most recently Gulftex Operating, Inc. has worked with Crusader Energy Group Inc. (Amex: KRU) Oklahoma City, Oklahoma and XTO Energy (NYSE:XTO) Fort Worth, Texas completing the McClendon #2-H. Negotiations with Devon follow a successful acquisition of acreage from The Williams Companies, also in the core area of the Barnett Shale.
Devon Energy Corporation maintains the dominant lease position with more than 715,000 net acres in the Barnett Shale. Devon has increased its Barnett production to more than 1 billion cubic feet per day. Devon accounts for nearly a quarter of the field's overall daily production of more than 4 billion cubic feet of natural gas equivalent. The agreement with Devon Energy Corporation provides Gulftex Operating, Inc. an opportunity to extend it's success in the Barnett Shale.
Five wells are slated for completion in 2009 by Gulftex Operating, Inc. targeting the core area of the Barnett Shale. Plans include an offsetting Frenchtown #2-H in 2009 and others. "A key factor in our agreements with companies like The Williams Companies and Devon Energy Corporation", according to Gulftex Operating, Inc. CEO, Tim Burroughs, "is our success record. By selecting top completion contractors, we can concentrate on providing the experienced oversight, critical to insuring optimal production and economic drilling. With lower gas prices, experience can make all the difference in the outcome. We are working to be the lowest cost producer, with the best record in the field."
Tim Burroughs, CEO of Gulftex Operating, Inc. notes, "Gulftex drilling operations alone produce income and jobs for over 150 local suppliers. Generally speaking, over $1 million will be invested locally in each well completed. Gulftex Operating, Inc, continues to contribute millions to the local economy through the years, as our wells successfully produce oil and gas. Communities receive taxes and fees, landowners receive royalty checks and local businesses continue to earn income providing necessary services to keep the wells producing and energy flowing. The exploration and production of the Barnett Shale formation is critical to the local economy directly and indirectly effecting every family in the region. We are always looking for new opportunities in the Barnett Shale and markets for our natural gas production."
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