Portfolio of Current Maxwell Resources Projects
Maxwell Resources has now acquired an additional mineral rights lease of a previously producing and currently shut-in East Texas gas well - Henchin #2, which adds to its previously announced acquisition of two gas well acquisitions in East Texas - Temple #1 and SGG #1.
The newly acquired lease represents an additional 435 Million Cubic Feet of Proved Developed Natural Gas that has been added to the growing Maxwell Resources' portfolio. Immediate steps have begun to rework the well in returning it to production.
The Henchin #2 well is anticipated to be back online and flowing by November 2015.
Temple #1 and SGG #1
Adding to our previously acquired five year hard mineral rights lease we have acquired multiple Proved Developed Properties in East Texas. Temple #1 and SGG #1. (refer to August 2015 8K) Based on the written results of the Company's recent Independent Reserve Report by a Registered Professional Petroleum Engineer these wells represent 859 Million Cubic Feet of Proved Developed Natural Gas and are valued at $1.767 Million.
The two wells in the prolific East Texas Basin were acquired following careful evaluation and scrutiny. Both wells have formerly produced and are presently shut-in, are connected to pipelines and have completed infrastructure in place. The company is immediately returning the wells to production. Cotton Valley, Travis Peak, Woodbine, Eagle Ford Shale, Buda Limestone and Austin Chalk are the additional zones that will be exploited in the acquired wells. Wells in the area are historically profitable as they initially produce natural gas and have demonstrated lifespans of over 50 years. Maxwell is now completing the final financial and engineering plans to uncap these wells, returning them to flow gas and further evaluate the additional zones.
Both wells are anticipated to be back online and flowing by November 2015.
The Raton Basin: Coal- and Mineral-Laden
The Raton Basin spreads across northern New Mexico and southern Colorado (the state line lies almost virtually in the middle of the Basin). It gets its name from the Raton Pass (a mountain pass on the Santa Fe Trail along the Colorado-New Mexico border) and from the Maxwell Land Grant town Raton.
The Raton Basin is about 50 miles heading east-west and about 90 miles going north-south, spreading out among Colorado's Huerfano and Las Animas counties and New Mexico's Colfax County. It is situated on discontinuous mesas that form the foothills of the Rocky Mountains that lie east of the Sangre de Cristo Range.
Most of the coal deposits are located in the Cretaceous Vermejo Formation and the overlying Cretaceous and Paleocene Raton Formation. Most mines of the past were of the underground room-and-pillar type. Mining recently has been of the longwall mining variety, a much safer form of mining and one which results in better recovery of resources (80 percent for longwall compared to 60 percent for room-and-pillar).
Mining in the Colorado portion of the Raton Basin once supplied the steel mills at Pueblo, Colorado, but mining activity is fairly dormant today, although the New Elk Coal Mine in Trinidad, Colorado is expected to reopen soon.
The location of the fee-simple mineral rights owned by Maxwell Resources to explore is within an area that once saw considerable mining activity. Two prominent mining ghost towns, Dawson and Elizabethtown are nearby, offering us access to railroad and other transportation methods.
In addition, Dawson and Elizabethtown are just three hours northeast of Santa Fe, New Mexico and just two hours northeast of Taos. State Highway 64 is close by, making transportation to and from our research/extraction sites trouble-free and straightforward.