STORH is pleased to announce that as of Friday the 19th of April, it has entered into a LOI (Letter of Intent) to purchase a sizable interest in a large producing oil and natural gas field in Austin and Waller Counties, Texas. The LOI stipulates the purchase price, details about the closing as well as its estimated close date of around Mid-May.
STORH’s token holders will own up to 12% of the Field which is currently producing ~ 750 barrels of oil per day and ~ 200Mcf of gas per day. The field is comprised of over 5,600 acres of productive leases and over 90 producing wells, showing its expanse and opportunity for development as well as low concentration risk. The life of the Field has engineered reserves projecting positive cash flow out over the next 2 decades with an internal rate of return greater than 20%.
“I have been looking for an entry point to buy into this particular field for about 7 years now; We are excited to give people the opportunity to own a piece of this great asset,” said Ryan Messer, STORH’s CEO. STORH will be co-investing with industry professionals including geologists, engineers, and energy company CEOs, which gives testimony to the ongoing potential of this asset.
This acquisition will represent a significant milestone in the company’s short existence and is representative of additional asset acquisitions to come. The company’s strategy from the onset was to execute on its plan to acquire assets that will serve as its foundation for growth as it ventures into other areas of energy and natural resources; This will generate significant value for token holders.
Full details of acquisition will be disclosed post-closing as to not disrupt the process of Due Diligence or encourage competition.