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20-Feb-2007
Quarterly Report
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
THIS REPORT CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934, INCLUDING, WITHOUT LIMITATION, STATEMENTS REGARDING THE COMPANY'S EXPECTATIONS, BELIEFS, INTENTIONS OR FUTURE STRATEGIES THAT ARE SIGNIFIED BY THE WORDS "EXPECTS", "ANTICIPATES", "INTENDS", "BELIEVES", OR SIMILAR LANGUAGE. THESE FORWARD-LOOKING STATEMENTS INVOLVE RISKS, UNCERTAINTIES AND OTHER FACTORS. ALL FORWARD- -LOOKING STATEMENTS INCLUDED IN THIS DOCUMENT ARE BASED ON INFORMATION AVAILABLE TO THE COMPANY ON THE DATE HEREOF AND SPEAK ONLY AS OF THE DATE HEREOF. THE FACTORS DISCUSSED BELOW UNDER "FORWARD-LOOKING STATEMENTS" AND ELSEWHERE IN THIS QUARTERLY REPORT ON FORM 10-QSB AND IN THE COMPANY'S ANNUAL REPORT ON FORM 10-KSB FOR THE YEAR ENDED JUNE 30, 2006, ARE AMONG THOSE FACTORS THAT IN SOME CASES HAVE AFFECTED THE COMPANY'S RESULTS AND COULD CAUSE THE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS.
The following discussion should be read in conjunction with the condensed financial statements and notes thereto.
PLAN OF OPERATION
BACKGROUND
The Company emerged from bankruptcy in 1999 as Erly Industries, Inc. For the past seven years, the Company has been engaged in a series of transactions and restructurings designed to acquire assets or an existing business.
The Company's search for an operating business or assets for acquisition was facilitated in September 2004 by the consummation of a significant investment in the Company by a strategic partner. On September 14, 2004, the Company executed a Stock Purchase Agreement (the "SPA") with GarcyCo Capital Corp. ("GCCC"). The SPA called for the issuance by the Company of an aggregate of 400,000 shares of Common Stock to GCCC in consideration of the payment of $500,000 in cash. The Company was to receive the funds in $50,000 increments each quarter, beginning October 15, 2004. As part of the consideration for the SPA, GCCC was given the right to elect one Board member and agreed to retain Catherine Thompson and Michael Avatar on the Board of Directors and as consultants through December 31, 2007. To date, GCCC has not elected a representative to the Board of Directors of Matrixx.
As of July 18, 2006, GCCC completed its obligation to deliver an aggregate of $500,000 in financing to the Company. The Company effected a 1 for 500 reverse stock split to all shareholders of record as of October 15, 2004. The reverse stock split was designed to facilitate the Company's acquisition strategy.
In December 2004, the Company entered into an Agreement and Plan of Reorganization (the "GCCC Agreement") with GCCC. The GCCC Agreement provided that the Company would acquire from GCCC certain property and businesses to be located by GCCC and in consideration, GCCC would receive 12,500,000 shares of the Company's Common Stock which was to be used for the purposes of acquiring other businesses and assets as identified by GCCC and the Company. GCCC had two years to meet all of the obligations under the GCCC Agreement. Should GCCC fail to meet any or all of its commitments, then GCCC would have been required to forfeit the pro-rata balance of the 12,500,000 shares. As of the date of this filing, the two year time period has lapsed and only 4,000,000 of the 12,500,000 shares were utilized for acquisitions. GCCC has returned the remaining 8,500,000 shares to the Company, and those shares have been cancelled.
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The GCCC Agreement also required the Company to issue to GCCC 100 shares of the Company's Series A Convertible Preferred Stock and 100 shares of Series B Convertible Preferred Stock. The Series A Convertible Preferred Stock is convertible into 50.1% of Matrixx's Common Stock at the time of conversion, which is determined at the sole discretion of GCCC. The Series A Convertible Preferred Stock has one vote per share. The Series B Convertible Preferred Stock is convertible into shares of Common Stock at a ratio of 1 for 1, and the time of conversion shall be determined at the sole discretion of GCCC. Each share of Series B Convertible Preferred Stock is entitled to 1,000,000 votes until such shares are converted into Common Stock.
The Company's current strategy is to target acquisition and investment opportunities in the oil and gas and natural resource exploration industries. The Company is developing a program for investments in the oil and gas industry which will allow the Company to grow responsibly by contributing to assets with diversification to help mitigate the industry-associated risk. The Company's philosophy is to take small interests in relatively low risk opportunities. However, the Company may elect to accept a larger interest when the cost / benefit or cost/risk ratio is perceived to be very low. Management is not experienced in this industry and as such relies upon consultants and partners to bring proposals and to assist with investment decisions. The Company attempts to minimize risk by working with experienced and reputable partners and operators, considering factors such as success rates, experience with certain types of wells, and the cash flow sources of the Company's partners . The Company must also evaluate deal structure for fit with the current portfolio demands and its ability to raise financing. Lastly, the Company also analyzes property specific details such as the type of well, the target depth to be drilled, the field location and proximity of other wells, and if reserves or fields are proven.
The Company's entry into the oil and gas and natural resource exploration business began on July 14, 2006 with the final approval and closing of the Company's purchase of a 98% interest in the Hazard Lake Property, a 355-hectare gold mining property in the Red Lake District in Ontario, Canada and its purchase of a five percent interest in the Clovelly Prospect, an oil and gas property in the Lafourche Parish, Louisiana.
Acquisitions and Investments
Hazard Lake Property. On October 10, 2005, the Company executed a Purchase Agreement (the "Hazard Agreement") with Overseas Investment Banking Alliance, S.A., a Panamanian corporation ("Overseas"), for the purchase of Overseas' 98% interest in the Hazard Lake Property in Ontario, Canada. The Hazard Lake Property is valued at $397,000, net of impairment costs of $600,000 recognized at June 30, 2006.
The Hazard Lake Property lies within the Archean Birch-Uchi Greenstone Belt of the western Uchi Subprovince of NW Ontario, in an area known as the Red Lake Mining District. The property consists of three unpatented claims, all of which are in good standing, with an aggregate area of approximately 355 hectares. The Company and GCCC have reviewed a proposal for an exploration program; however, the Company's recent focus in the oil and gas sector is expected to take precedence for the near term.
Clovelly Prospect. On November 15, 2005, the Company executed a Letter Agreement (the "Letter Agreement") with Sterling Grant Capital Inc. (formerly Sun Oil and Gas Corp.) to purchase a 5% minority interest in an oil prospect property. The property is the Clovelly Prospect which is located in southeast Louisiana in the Lafourche Parish.
Drilling of the Allain-LeBreton No. 2 well on the Clovelly Prospect commenced on June 19, 2006.
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Due to difficulties encountered in drilling the No. 2 well, the operator will drill a twin hole. A twin hole is described as drilling a well adjacent to an existing well, such as the No. 2 well. The Company also plans to drill as soon as practicable, an additional well known as a PUD (Proven, Undeveloped Well) to a target depth of 12,500 feet.
The No. 2 well encountered a two foot gas discovery, but due to the location of the hole, the drilling may have incurred an offset, whereby an additional 28 feet of discovery may exist containing up to 5 BCFG. While the gas discovery might be considered as an added benefit, the intended cause of drilling the twin is primarily to target what is known as the "M" sand at or about 14,300 feet to 14,500 feet with a prospective size of 10 to 11 million barrels of oil ("MMBO"). The Clovelly field has produced over 30 MMBO, most of which occurred in the "M" sand.
Drilling of the PUD well will likely occur prior to, or concurrently with, the drilling of the twin well and is expected to assist in offsetting cash outlays required for the new well. It is anticipated that this drilling will occur in the late first calendar quarter of 2007.
Buck Snag Field. On August 28, 2006, the Company entered into an Acquisition and Participation Agreement ("Buck Snag Agreement") for the acquisition of a 42.5% working interest in the Buck Snag Field ("Buck Snag") from Texahoma Energy, Inc. (Pink Sheets: TXHE), a Nevada corporation ("Texhoma") , for a purchase price of $150,000. The Company's 42.5% working interest in the leases is subject to an existing overriding 28% royalty interest. Pursuant to the terms of the Buck Snag Agreement, Texhoma has the right to back-in for a 12.5% working interest after payout of the investment to the Company. Payout is defined as the receipt by the Company of the equivalent of the purchase price and the investment out of revenue distribution from the Operator. Sunray Operating Company, LLC, located in Sugarland, Texas, ("Sunray" or "Operator"), is the Operator for Buck Snag. Per the Buck Snag Agreement, Sunray is also entitled to a 12.5% working interest, proportionately reduced at payout. Both back-in working interest percentages to Texhoma and to Sunray are already factored into the Company's 42.5% working interest percentage. The Company's payment of $150,000 to Texhoma was for an initial 57.5% participation in Buck Snag but subsequently the Company agreed to convey 15% of its participation as partial payment for a 10% participation in the Sandy Point Prospect.
The Buck Snag Prospect covers approximately 280 acres of land in Colorado County, Texas. The Schiurring #1 well on Buck Snag commenced drilling on August 11, 2006 at approximately 500 feet north of the Windsor #2 Schiurring well. On August 18, 2006, the target depth of 4,400 feet was reached. The Schiurring #1 well was completed in the 2,030 foot sand and placed into production on August 24, 2006. Initial flow rate commenced at 120 thousand cubic feet ("MCF") of gas per day, and after the water cleanup, well production was expected to increase to 300 MCF of gas per day. Subsequently, the Schiurring #1 well developed mechanical problems allowing excess water into the well and rendering it difficult to maintain production. The Company has received initial revenues from the production of natural gas at Schiurring #1, however, it is anticipated that additional costs will be required to continue production for this well.
The Company, its partners and the operator commenced drilling on the Schiurring #2 well on the Buck Snag Prospect on November 30, 2006. The well reached a total depth of 4,406 feet and logged apparent gas pays in three reservoirs: i) the "3,800 ft-sand" appears productive from 3,812 ft to 3,827 ft. ii) the "3,500 ft-sand" appears productive from 3,525 ft to 3,530 ft. and iii) the "2,000 ft-sand" appears productive from 2,035 ft to 2,040 ft . The Schiurring #2 well was completed on December 8, 2006. The well was perforated from 3812 to 3815 feet and has been producing at test rates ranging from 200 to 250 mcfd. Upon completion of all gas sales from the 3,800 foot sand, the operator anticipates perforating and producing from the 3,500 foot sand and the 2,000 foot sand.
Manvel Prospects. On October 5, 2006, the Company finalized an Acquisition and Participation Agreement with Texhoma for the acquisition of a majority working interest in two wells located in
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Brazoria County, Texas (the "Manvel Agreement"). Pursuant to the terms of the Manvel Agreement, the Company received a 55% working interest in the Manvel 2,000 ft. Miocene Exploration prospect ("Miocene Prospect") for $20,000 and a 55% working interest in the Manvel 4,500 ft. Oakville Development well ("Oakville Prospect") for $40,000, (collectively, "Manvel Prospects").
The Company's working interest in the leases is subject to an existing overriding 25% royalty interest. Pursuant to the terms of the Manvel Agreement, Texhoma has the right to back-in for a 12.5% working interest after payout of the investment to the Company for each well. Payout is defined as the receipt by the Company of the equivalent of the purchase price and the investment out of revenue distribution from the Operator, Sunray. Per the Manvel Agreement, Sunray is also entitled to a 12.5% working interest, proportionately reduced at payout for each well. Both back-in working interest percentages to Texhoma and to Sunray are already factored into the Company's 55% working interest percentage for both leases. Subsequently the Company has agreed to convey 10% of its participation in the Manvel properties as partial payment for a 10% participation in the Sandy Point Prospect (see below). Thus, the Company's working interest in the Manvel properties is 45%.
Sandy Point Prospect. On November 16, 2006, the Company finalized the terms of an agreement with Texhoma and Sunray to acquire a 10% working interest in the Sandy Point Prospect for an aggregate amount of $35,928.57. The participation fee is to be paid through a conveyance of 15% of the Company's participation in Buck Snag valued at $22,500; 10% participation in the Manvel properties valued at $6,000; and $7,428.57 in cash. The Company's initial participation in Buck Snag was 57.5%, which was decreased to 42.5% as described above. Additionally, the Company's initial 55% participation in each of the Manvel Prospects has been decreased to 45%. The remaining terms of the Buck Snag and Manvel Agreements were not altered. The Sandy Point Prospect covers 196 acres of land in Brazoria County, Texas. The Fite No. 3 well will be drilled to the Frio formation to a depth of 6,700 to 7,000 feet, where Sunray, the operator for the well, expects to gain approximately 20 feet of structure to an existing producing well known as the Fite No. 1. The operator is nearing its completion of the quarter mile board road to facilitate the transportation of equipment and personnel to the Fite #3 site. Due to inclement weather, progress has been slower than expected. Upon completion, the rig would be moved on site and drilling will commence immediately thereafter.
RESULTS OF OPERATIONS
The Three and Six Months Ended December 31, 2006 Compared To The Three and Six Months Ended December 31, 2005
Revenues. The Company received $3,494 in revenue from its interests in oil and gas properties during the three and six month periods ended December 31, 2006. The Company did not generate any revenue in the corresponding periods ended December 31, 2005. The Company's entry into the oil and gas and natural resource exploration business began on July 14, 2006. Previously, the Company's focus had been on the evaluation and selection of existing businesses to effect a merger or acquisition. The Company has been in the development stage since July 2001.
General and Administrative Expenses. The Company incurred $818,011 and $1,976,664 in general and administrative expenses for the respective three and six months ended December 31, 2006, compared to $752,563 and $1,433,718 for the respective three and six months ended December 31, 2005. The increases in 2006 were due primarily to expenses incurred to support and to facilitate the growth of Matrixx, as explained below.
Included in general and administrative expense for the three months ended December 31, 2006 was $598,916 of expense related to the issuance of an aggregate of 35,255,571 shares of Common Stock to consultants in lieu of cash compensation. In addition, $177,668 of expense was related to the issuance of
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an aggregate of 7,046,555 shares of Common Stock, for prepaid consulting expenses. Included in general and administrative expense for the six months ended December 31, 2006 was $1,643,432 of expense related to the issuance of an aggregate of 63,077,863 shares of Common Stock to consultants in lieu of cash compensation. In addition, $409,936 of expense was related to the issuance of an aggregate of 21,907,682 shares of Common Stock, for prepaid consulting expenses. At December 31, 2006, the Company had minimal cash. Consultants receiving stock agreed to receive these securities, in lieu of cash, for payment of services rendered.
Production Expenses. The Company incurred $352 in production expenses for the three and six months ended December 31, 2006. The production expenses included transportation, marketing and severance taxes associated with the production of oil and gas revenues. There were no production expenses for the corresponding three and six month periods in 2005.
Depreciation, Depletion, & Amortization ("D D & A"). The Company recognized $222 in D D & A expense in the three and six months ended December 31, 2006, and no D D& A expense in the three and six months ended December 31, 2005. The expense recognized during the three and six months ended December 31, 2006 represents amortization on evaluated oil and gas properties and is computed on the units of production method based on all proved reserves.
Interest Expense. The Company recognized $12,018 and $17,490 for the respective three and six months in interest expense in the quarter ended December 31, 2006, and $1,896 in interest expense in the three and six months ended December 31, 2005. The higher expense realized during the three and six month periods ended December 31, 2006 represents interest on borrowings to assist the Company with its acquisition strategy.
Net Loss. As a result of the foregoing factors, the Company's net loss increased to $826,757 for the three months ended December 31, 2006, compared to a net loss of $754,459 for the three months ended December 31, 2005. The net loss per share was negligible for the three months ended December 31, 2006, compared to a net loss per share of $0.02 for the three months ended December 31, 2005. The Company's net loss increased to $1,990,882 for the six months ended December 31, 2006, compared to a net loss of $1,435,614 for the six months ended December 31, 2005. The net loss per share was $0.00 for the six-month period ended December 31, 2006, compared to a net loss per share of $0.04 for the six-month period ended December 31, 2005.
LIQUIDITY AND CAPITAL RESOURCES
The Company has an immediate need for capital. At December 31, 2006, the Company had only $3,587 in cash or cash equivalents. The Company's operating activities used $99,325 in net cash during the six months ended December 31, 2006, compared with $280,374 in net cash used by operating activities during the six months ended December 30, 2005. The cash provided by operating activities during the six months ended December 31, 2006 was primarily due to non-cash gains of $1,371,992 reflecting the issuance of stock for services and prepaid services and $420,405 for the issuance of stock on a subscription receivable. Other gains contributing to net cash used by operating activities included a $261,780 decrease in prepaid expenses, an increase in accrued liabilities - related parties of $508 and an increase in accrued interest of $17,490. These gains were offset by an increase in other assets of $516 and a decrease in accounts payable and accrued liabilities of $180,104. The cash used by operating activities during the six months ended December 31, 2005 included non-cash gains of $1,277,750 reflecting the issuance of stock for services and prepaid services offset by other changes affecting net cash used by operating activities at December 31, 2005. These other changes included a decrease in prepaid expenses of $92,815, an increase of $1,502 in accrued liabilities - related parties, and an increase in accrued interest of $1,896, offset by an increase in deferred cost of acquisition of $212,000 and a decrease in accounts payable and accrued liabilities of $6,724.
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The Company utilized $521,493 in cash for investing activities during the six months ended December 31, 2006. The Company invested $216,343 in proven oil and gas properties, net of D D &A, and $400,149 in unproven oil and gas properties during the six months ended December 31, 2006 offset by a decrease in cash paid in advance of acquisitions of $95,000. There were no investing activities in the six months ended December 31, 2005. Financing activities provided $624,333 of cash during the six months ended December 31, 2006, consisting primarily of $503,143 in proceeds from notes payable and $146,190 in proceeds from the subscription receivable to GCCC, offset by $25,000 paid on notes payable. During the six months ended December 31, 2005, financing activities provided $280,336 of cash consisting primarily of $135,095 in proceeds from the subscription receivable to GCCC, $142,500 in proceeds from notes payable and a bank overdraft of $2,741.
The Company has received minimal revenues to date from to its recent investments in oil and gas properties, and has experienced operating losses since inception primarily caused by its continued development and administrative costs. As shown in the accompanying financial statements, the Company incurred net losses of $826,757 and $1,990,882 for the three and six months ended December 31, 2006. Since inception, the Company has incurred a net loss of $19,312,163. Primarily as a result of these recurring losses, Matrixx's independent certified public accountants modified their report on the June 30, 2006 financial statements to include an uncertainty paragraph wherein they expressed substantial doubt about the Company's ability to continue as a going concern. Management of the Company is actively seeking additional capital; however, there can be no assurance that such financing will be available on terms favorable to the Company, or at all. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Continuation of the Company as a going concern is dependent on the Company continuing to raise capital, developing significant revenues and ultimately attaining profitable operations.
On May 27, 2004 the Company executed a Convertible Promissory Note in the principal amount of $160,000 (the "Note") with Interactive Ideas Consulting Group ("IICG"). The Note bears interest at the rate of 8% per annum and was due and payable in full on or before May 26, 2005. The Company believes that there is a sufficient basis on which to dispute the amounts of principal and interest of the Note. As such, the Company accrued interest through the maturity date of May 26, 2005, in the amount of $12,800; no amounts for interest have been accrued beyond that date. As of the date of this filing the Company has not converted the Note and IICG has not requested a conversion.
On September 14, 2004, the Company executed the SPA with GCCC. The SPA called for the issuance by the Company of an aggregate of 400,000 shares of Common Stock to GCCC in consideration of the payment of $500,000 in cash. The Company was to receive the funds in $50,000 increments each quarter, beginning October 15, 2004. The 400,000 shares were to be held in escrow by the Company and delivered on a pro-rata basis within 10 days of receipt of each installment. All shares are restricted within the meaning of Rule 144 under the Securities Act and must be held indefinitely unless subsequently registered or qualified for exemption. The SPA included a provision that the purchase price per share, and therefore the number of shares to be delivered at the time of each installment payment, would be calculated for each installment at the lesser of: (a) $1.25 or
(b) a 37.5% discount to the 10 day trailing closing price of the Company's Common Stock at the time of each payment. At September 14, 2004, the Company had an aggregate of 305,108 shares of Common Stock outstanding on a fully-diluted basis. Based on the price of the Company's Common Stock at that date, GCCC would have owned and controlled approximately 56.73% of the Company's fully-diluted Common Stock and 56.73% of the Company's outstanding Common Stock calculated pursuant to Rule 13d-3(d)(1)(B) of the Securities Exchange Act of 1934. As of July 18, 2006, the Company had received an aggregate of $500,810 in financing from the SPA. On September 18, 2006, the Company delivered 18,543,373 shares of restricted Common Stock, at an average price of $0.027 per share, as calculated using method (b) described above thus completing the terms of the SPA.
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The Company and GCCC sought to identify and evaluate business opportunities for acquisition or merger to provide long-term growth for its shareholders and to meet the Company's objective of attaining a listing on a national exchange. On October 10, 2005, the Company executed the Hazard Agreement with Overseas for the purchase of Overseas' 98% interest in the Hazard Lake Property in Ontario, Canada. The Hazard Agreement called for an aggregate purchase price of $397,000, of which a note for $130,000 was issued, payable in annual installments as follows: $25,000 on March 15, 2006, $30,000 on March 15, 2007, $35,000 on March 15, 2008, and $40,000 on March 15, 2009. Overseas extended the March 15, 2006 payment date to coincide with the closing of the acquisition on July 14, 2006. The Company has also issued 2,000,000 shares of Common Stock to Overseas. These shares were delivered from the 12,500,000 shares issued to GCCC pursuant to the terms of the GCCC Agreement. The Hazard Agreement valued the shares at $200,000, or $0.10 per share, based on the current market price on the date of the Hazard Agreement. However, the 12,500,000 escrowed shares were valued at $0.40 per share when issued to GCCC and, therefore, the Company was initially required to value the 2,000,000 shares transferred to Overseas at $0.40 per share for an aggregate value of $800,000, thus making the total purchase price to Matrixx $997,000. As a result of the Company's recently focused attention on acquiring oil and gas properties, it was determined that the value of the Hazard Lake Property in deferred acquisition cost was impaired. At June 30, 2006, the Company recognized an impairment in the value of the Hazard Lake Property of $600,000.
On November 15, 2005, the Company executed the Letter Agreement with Sterling to purchase a 5% minority interest in an oil prospect property known as the Clovelly Prospect ("Clovelly"). The Letter Agreement called for an aggregate purchase price of $115,000, of which $15,000 has been prepaid in cash and the balance of $100,000 was paid with the issuance of 2,000,000 shares of registered Common Stock also delivered from the shares issued to GCCC. The shares were issued on January 30, 2006 from the 12,500,000 shares issued to GCCC pursuant to the terms of the GCCC Agreement, leaving the balance of shares in escrow at 8,500,000. The Letter Agreement valued the shares at $100,000, or $0.05 per share, based on the current market price of the Company's Common Stock on the date of the Letter Agreement. However, the 12,500,000 escrowed shares were valued at $0.40 per share when issued to GCCC and, therefore the Company is required to value the 2,000,000 shares transferred to Sterling at $0.40 per share for an aggregate value of $800,000. It is possible that in the future the Company will be required to recognize an impairment in the value of its interest in the Clovelly investment. As of December 31, 2006, the Company has paid $177,450 in development costs for the first well, the #2 Allain-LeBreton well, drilled at Clovelly with a balance owing of $102,718.
The Company's goal is to invest cash flow proceeds from successes into new . . .
Sandy Point Field was discovered in 1937, and 60 acres yielded 665,000 BO from the 2nd Frio sand. Also, in the nearby W. Sandy Point Field, the Shepperd No. 1 Fite has produced 250,000 BO, and 150 MMCFG, from the 1st and 2nd and 3rd Frio sands.
The Express No. 1 Fite re-established production in Sandy Point Field in 2002. The 1st Frio sand has gas-on-oil and the 2nd Frio sand (the main pay in Sandy Point Field) has good oil shows in cuttings and sidewall cores.
3-D Seismic, along with well control, confirm that the Express well discovered a new, productive structure. However, the No. 1 Fite well is located low or flankish on the structure. The objective of the Fite No. 3 well is to drill to the 6,700 to 7,000 depth and find structural advantage on the order of magnitude of 10' to 20' over the No. 1 well. The results should be a 1st Frio gas sand of 10' net pay thickness, and 2nd Frio oil sand of 10' net pay thickness. The recoverables attributable to such a development well are estimated to be 0.4 BCFG and 500,000 BO.
Dry Hole Costs (DHC) of the Fite No. 3 are expected to be $445,000 and completion costs attributable to the well are $218,500. Matrixx holds a 10% working interest in the prospect. Matrixx's drilling and completions costs of the well are expected to be approximately $44,500 and $21,850 respectively. Fite No. 3's close proximity to the currently producing Fite No. 1 well will provide for the minimal completion costs. Dry hole costs for the Fite No. 3 have already been paid.
Matrixx has remained steadfast in its efforts in acquiring growth and investment opportunities in the oil and gas sector with the intent of providing the Company and its shareholders a much-improved increase in shareholder value. Additionally, the Company is now positioned to aggressively exploit its properties to accelerate cash flow and to provide rapid returns on its investments in the oil and gas sector.
Mar 13, 2007 11:38:00 AM
LOS ANGELES, CALIFORNIA -- (MARKET WIRE) -- 03/13/07 -- Matrixx Resource Holdings, Inc. (OTCBB: MXXR) announced today that the Company has been notified by the operator regarding the arrival of a drilling rig to begin drilling the Fite No. 3 well at Sandy Point in Brazoria County, Texas.
Reports from the operator disclose the arrival of the rig on site as of yesterday. Preparation of the rig is currently underway. Additionally, the operator expects to spud Wednesday or Thursday.
Sandy Point Field was discovered in 1937, and 60 acres yielded 665,000 BO from the 2nd Frio sand. Also, in the nearby W. Sandy Point Field, the Shepperd No.1 Fite has produced 250,000 BO, and 150 MMCFG, from the 1st and 2nd and 3rd Frio sands.
The Express No.1 Fite re-established production in Sandy Point Field in 2002. The 1st Frio sand has gas-on-oil and the 2nd Frio sand (the main pay in Sandy Point Field) has good oil shows in cuttings and sidewall cores.
3-D Seismic, along with well control, confirm that the Express well discovered a new, productive structure. However, the No. 1 Fite well is located low or flankish on the structure. The objective of the Fite No. 3 well is to drill to the 6,700 to 7,000 depth and find structural advantage on the order of magnitude of 10\' to 20\' over the No. 1 well. The results should be a 1st Frio gas sand of 10\' net pay thickness, and 2nd Frio oil sand of 10\' net pay thickness. The recoverables attributable to such a development well are estimated to be 0.4 BCFG and 500,000 BO.
Dry Hole Costs (DHC) of the Fite No.3 are expected to be $445,000 and completion costs attributable to the well are $218,500. Matrixx holds a 10% working interest in the prospect. Matrixx\'s drilling and completions costs of the well are expected to be approximately $44,500 and $21,850 respectively. Fite No. 3\'s close proximity to the currently producing Fite No.1 well will provide for the minimal completion costs. Dry hole costs for the Fite No. 3 have already been paid.
Matrixx has remained steadfast in its efforts in acquiring growth and investment opportunities in the oil and gas sector with the intent of providing the Company and its shareholders a much-improved increase in shareholder value. Additionally, the Company is now positioned to aggressively exploit its properties to accelerate cash flow and to provide rapid returns on its investments in the oil and gas sector.
Safe Harbor Statement: This press release contains forward-looking statements as defined in The Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "plan", "confident that", "believe", "scheduled", "expect", or "intend to", and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties, and actual results may differ materially from those expressed in any forward-looking statement. Such risks and uncertainties include, but are not limited to, the ability of Matrixx to sell the applicable products and the acceptance of those newly designed products by the market, market conditions, the general acceptance of the Company\'s products, competitive factors, timing, and other risks described in the Company\'s SEC reports and filings.
Contacts:
Matrixx Resource Holdings, Inc.
Konstantine Tsakumis
Media & Investor Relations
(347) 647-1508
Email: ir@mrhi.net
Tuesday March 27, 2:17 pm ET
LOS ANGELES, CALIFORNIA--(MARKET WIRE)--Mar 27, 2007 -- Matrixx Resource Holdings, Inc. (OTC BB:MXXR.OB - News) announced today that the Fite No. 3 well at Sandy Point is drilling at 3,876 feet.
ADVERTISEMENT
The Company has been notified by the operator that, as of early this morning, drilling has reached a depth of 3,876 feet. Drilling began Friday, March 23 and is expected to take approximately 10 days to reach the target depth of 7,000 feet. Upon reaching target depth, the well will be logged, and should there be a discovery, completed. This process will take an additional few days.
The Sandy Point Field, located in Brazoria County, was discovered in 1937, and 60 acres yielded 665,000 BO from the 2nd Frio sand. Also, in the nearby W. Sandy Point Field, the Shepperd No.1 Fite has produced 250,000 BO, and 150 MMCFG, from the 1st and 2nd and 3rd Frio sands.
The Express No.1 Fite re-established production in Sandy Point Field in 2002. The 1st Frio sand has gas-on-oil and the 2nd Frio sand (the main pay in Sandy Point Field) has good oil shows in cuttings and sidewall cores.
3-D Seismic, along with well control, confirm that the Express well discovered a new, productive structure. However, the No. 1 Fite well is located low or flankish on the structure. The objective of the Fite No. 3 well is to drill to the 6,700 to 7,000 depth and find structural advantage on the order of magnitude of 10\' to 20\' over the No. 1 well. The results should be a 1st Frio gas sand of 10\' net pay thickness, and 2nd Frio oil sand of 10\' net pay thickness. The recoverables attributable to such a development well are estimated to be 0.4 BCFG and 500,000 BO.
Matrixx has remained steadfast in its efforts in acquiring growth and investment opportunities in the oil and gas sector with the intent of providing the Company and its shareholders a much-improved increase in shareholder value. Additionally, the Company is now positioned to aggressively exploit its properties to accelerate cash flow and to provide rapid returns on its investments in the oil and gas sector.
Safe Harbor Statement: This press release contains forward-looking statements as defined in The Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "plan", "confident that", "believe", "scheduled", "expect", or "intend to", and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties, and actual results may differ materially from those expressed in any forward-looking statement. Such risks and uncertainties include, but are not limited to, the ability of Matrixx to sell the applicable products and the acceptance of those newly designed products by the market, market conditions, the general acceptance of the Company\'s products, competitive factors, timing, and other risks described in the Company\'s SEC reports and filings.
Contact:
Contacts:
Matrixx Resource Holdings, Inc.
Konstantine Tsakumis
Media & Investor Relations
(347) 647-1508
Email: ir@mrhi.net
Website: http://www.mrhi.net
Das bedeutet für mich, Kaufen, Kaufen, Kaufen !!
Dear Sir,
I apologize for the delay in responding to your emails, however I have been away and just recently returned from a short vacation. I was expecting my emails to be answered in my absence, but I fear this did not happen to my expectations.
I must assume by now you have heard that the drilling at Sandy Point did not produce any positive results. This is indeed unfortunate, however it was a relatively inexpensive effort and management along with the company consultants considered this effort a decent prospect and proceeded with the venture.
The company’s efforts will now turn to the remaining properties in its portfolio, beginning with the Clovelly, Manvel, and of course Buck Snag properties. As you know the Schiurring No. 2 well at Buck Snag was succesful and the company expects to proceed soon with its efforts at Clovelly and Manvel. Once definitive dates have been given the company will announce its drilling intentions at both those two properties.
Again, kindly accept my apologies for the delay in my response to your requests.
Best Regards,
Konstantine Tsakumis
ir@mrhi.net
www.mrhi.net
Der Handel mit MXXR Aktie, hat an allen Börsen etwa zur gleichen Zeit aufgehört !!
Mit den Projekten Buck Snag, Manvel und Clovelly, wird Geld in deren und UNSERE Kassen kommen !!
SANDY POINT sollte nur eine kleine Geldquelle für Clovelly werden, das wurde aber leider ein kleiner Reinfall !!
Hier ein kleiner Auszug der Mail von MXXR bezüglich SANDY POINT !!
Ich muss annehmen, dass Sie gehört haben, dass das Bohren an Sandy Point keine positiven Ergebnisse hergestellt hat. Dies ist tatsächlich unglücklich, Jedoch war es eine verhältnismäßig preiswerte Bemühung die Leitung zusammen mit den Firmenberatern haben bedacht, dass diese Bemühung eine anständige Aussicht und sind mit dem Wagnis fortgefahren.
Ich sage nur WIR müssen nach vorne sehen, denn SANDY POINT liegt hinter UNS !!
Die ZEIT läuft für und mit UNS !!
Hopefully you know that a company cannot divulge the day or content of Future press releases. But with regards to your question, we are working on the issues and we will update shareholders soon.
John
Hier in etwa auf Deutsch !!
Hoffentlich wissen Sie, dass eine Firma den Tag oder Inhalt zukünftiger Presseerklärungen nicht preisgeben kann.
Aber mit Beachtungen zu Ihrer Frage bearbeiten wir die Ausgaben und wir werden die Aktionäre bald aktualisieren.
John
Wann kommt eine Aktualisierung von den Projekten, Buck Snag, Manvel und Clovelly !!
Samstag den 14.04.2007 19:46:28 UHR
oildragon,
Just, we are back in Houston Monday to continue with Clovelly. I think
this will clear the air and allow us to update everyone when we are back. I
expect us to be gone until next Thursday, but things should be moving
forward (not drilling, just getting all the partners on the same page and
ready to move forward) by then. Not much else I can say at this point.
But we are excited there is finally progress there.
John
Mal sehen was wird !!
Vom 16 Apr 2007 07:15 Uhr
Dear Sir,
For your information, Konstantine is a male name.
Management has not yet informed me when the will have all the information to create an update regarding any upcoming drill programs. I assume that it will most likely come sometime within the next few weeks. I trust you will wait patiently!
Thank you again for your inquiries.
Konstantine
Weiß MXXR, was MXXR macht !! ??
hier eine Mail von HEUTE.
oildragon,
Updates are forthcoming. Your patience is greatly appreciated.
Konstantine
Das bedeutet das NEW`S anstehen und dass man nur jetzt noch billig an Aktien kommt !!
ich denke das ist nie so ganz klar...
danke!!
zur Zeit fördern SIE Gas, was gerade Ihre Kosten deckt.
In dfer Vorbereitung sind Bug Snag, Manvile und Clovelly.
An Bug Snag wird wie oben erwähnt, bereits Gas gefördert und in der Nähe stehen noch 3 Bohrungen aus.
An Manvile wird Gas und Öl vermutet.
An Clovelly gib es Gas und Öl mit 100% Sicherheit.
Ich kann Dir die genauen Prozente der Beteiligungen von MXXR an den genannten Projekten nich sagen.
Aber soviel kann ich Dir sagen, wenn Sie alle Projekte mit Erfolg abschließen, steht die Aktie bei mindestens 1,oo€
Die ganzen Vorbereitungen und dass Palavern mit den Partnern, nimmt Zeit in Anspruch.
Auch ist MXXR, nicht immer besonders schnell mit den New`s.
wobei: eigentlich müsste ja alles klar sein. die beteiligungen sind gesetz... oder geht es darum ob MXXr überhaupt be clovelly noch dabei ist? weisst du da mehr??
ich denke MXXR wird sich Geld beschaffen, damit SIE bei Covelly nicht rausgedrängt werden und vieleicht auch um einem Partner Anteile von Clovelly abzukaufen.
MXXR wird bei Clovelly dabei sein, es fragt sich nur um welchen Preis ?
Symbol: MXXR
April 5, 2007 - 8:00 PM EDT
Matrixx Resource Holdings, Inc.: Drilling Update
Matrixx Resource Holdings, Inc. (OTCBB: MXXR), announced today that operator and Matrixx plan to re-complete the Buck Snag Schuirring No. 2 well. Additionally, the Company has been informed that the Fite No. 3 well at Sandy Point was unsuccessful.
The Company has been notified by the operator regarding the drilling of the Fite No. 3 well at Sandy Point. Drilling reached target depth of 6,700 feet Monday. The well was logged and found the frio sands 10' below the Fite No. 1, however, logging was unsuccessful at locating any discoveries.
Further, Matrixx was informed that the Schuirring No. 2 at Buck Snag will be re-completed at the shallower pay sand and will be back online for sales.
Matrixx has remained steadfast in its efforts in acquiring growth and investment opportunities in the oil and gas sector with the intent of providing the Company and its shareholders a much-improved increase in shareholder value. Additionally, the Company is now positioned to aggressively exploit its properties to accelerate cash flow and to provide rapid returns on its investments in the oil and gas sector.
grüße
gianni