America Resources Acquires Interest in East Texas Wells

America Resources Exploration on Aug. 13 said it acquired a fractional interest in two wells located in Shelby County, Texas.

XTO Energy, a subsidiary of ExxonMobil, is the operator for both wells, which America Resources said are averaging combined daily production of 6,763 million cubic feet of natural gas for the six months ending April 2015.

The company also said that the wells have demonstrated year-over-year production growth.

Both wells are drilled in the Carthage field into the Haynesville Shale formation and are producing from a completion interval depth of 12,890 feet to 19,053 feet.

“We are excited to diversify our production portfolio with this natural gas play,” Huang Yu, CEO of America Resources, said in an Aug. 13 statement. “This transaction also displays our determination to associate with established operating partners like XTO Energy in an industry where relationships are a key to success and longevity.”

America Resources on Aug. 19 said it also acquired two oil and gas leases – called the Snyder leases – on approximately 950 acres in Callahan County, Texas, through its 94% subsidiary Seabourn Oil Company.

Also in August, America Resources signed an agreement with NGL Energy Partnership LP’s Crude Logistics. NGL will buy all of America Resources’ oil production from its Rogers & Burns property in Frio & Atascosa, Texas, which the company estimated will total approximately 1,000 barrels per month.

“We are pleased to be working with a big and well-established company like NGL and look forward to delivering our crude to them,” Yu said. “It is based off strong partnerships like this that America Resources Exploration will be able to continue to develop and increase revenues, while at the same time building a strong reputation in the industry.”