Insight.
Growth.
Value.

In early 2011, our wholly-owned subsidiary, New Western Texas Oil and Gas Corp. entered into a joint venture agreement with 3-M Production, a Texas-based operator, to acquire a working interest in the Swenson Lease, a 160-acre property in Jones County, Texas that is surrounded by wells with a history of oil production. Productive oil fields in the surrounding areas include the Griffin Field (approx. 3/4 miles west of the property area), and the Iron Mountain - Avoca Pool field (located 1/2 mile northeast of the property), which have produced approximately 19.6 million barrels of oil combined; and the Jones County Regular Field (located approx. 1000 feet southeast of the prospect area), which has produced 40,578 barrels of oil. All of the elements needed for establishing oil production are present on the Swenson Lease: a trapping mechanism, reservoir rock and the presence of hydrocarbons. The initial test well was drilled in March 2011 to a depth efficient enough to determine the sand and rock formation of the area. Based on a geological study on the property, at least one additional well on the Swenson Lease and possibly one well to the south will be needed in order to complete the drainage of the oil field.