Lexington Resources, Inc.
Lexington Resources, Inc.: LEXINGTON RESOURCES FURTHER ARKOMA BASIN CBM DRILLING TO BEGIN NEXT WEEK
Corporate-news transmitted by DGAP – a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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LEXINGTON RESOURCES FURTHER ARKOMA BASIN CBM DRILLING TO BEGIN NEXT WEEK
Las Vegas, Nevada – March 16, 2006/PRNewswire-Firstcall/ — Lexington
Resources, Inc. (OTCBB: LXRS, Frankfurt, Berlin: LXR) (the “Company”),
announces that the Company and its Arkoma Basin exploration partner Dylan
Peyton, LLC will begin to jointly develop the Company’s Coal Bed Methane
(“CBM”) targeted leases in the State of Oklahoma next week.
Drilling is slated to begin on several of the Company’s South Lamar leases
with two drilling rigs targeting both shallow vertical wells to test
Hartshorne Coal, shallow gas sand, and possibly Woodford gas targets in the
area, in addition to horizontal CBM gas wells. A preliminary total of 3 to
4 wells are planned at the outset of the current exploration program on the
South Lamar Lease, with further direction on drilling targets to be guided
by the drilling results of the first test wells in the program. Two
drilling rigs provided by the Company’s exploration partner allow for fast
deployment and simultaneous drilling on both vertical and horizontal
targets in different sections of the South Lamar Prospect to test certain
targets. Shallower vertical wells are to be drilled by a smaller, more cost
effective drilling rig. Developed wells that produce gas help the Company
hold lease acreage through required production which permit Lexington
Resources and its partner to infill drill the rest of the producing lease
at a later date.
The CBM gas target zones are estimated to be approximately 2,800 feet deep,
while shallow gas sands in the area are estimated to be in the 1,000 to
2,000 foot depth range. The first vertical well will begin drilling rig
mobilization on site next week to drill to the CBM and shallow gas sand
targets. Road access work is under development, in addition to well
staking, AFE generation, and site preparation dirt work.
Under the exploration joint venture between the Company and Dylan Peyton,
LLC, Lexington Resources contributes its current inventory of Arkoma Basin
Oklahoma CBM leases to jointly develop gas-producing wells with Dylan
Peyton, LLC on a 50/50 equal working interest basis. The Company’s
operating subsidiary, Oak Hills Drilling and Operating, LLC (“Oak Hills”)
will be utilized for well completion and service, as well as geological and
engineering work associated with the joint exploration.
The joint venture allows the Company to drill continuously and
simultaneously on its leases in both the Arkoma Basin, Oklahoma, through
designated operator Avatar Energy, LLC, and the Barnett Shale in Texas,
through Oak Hills. The Company is concurrently drilling in the Barnett
Shale on its Oliver Lease in Tarrant County, Texas. The Arkoma Basin
development includes hands-on input by the Company into all aspects of the
development cycle, from target geology to pipeline completion, through its
close working association with Avatar Energy, LLC.
Innovative technology is currently available to make CBM drilling and
completions more economic in the face of rising service industry costs. New
drilling and “fracing” (porous underground fracture) techniques are being
successfully applied to CBM drilling in the Arkoma Basin that increase the
economics of the play by deceasing drilling costs while increasing
production.
About Lexington Resources, Inc.: Lexington Resources, Inc. is a junior
integrated natural resource exploration company engaged in the acquisition
and development of oil and natural gas properties in the United States. Its
current operational focus is on gas development initiatives in the Arkoma
Basin, Oklahoma and the Dallas Fort Worth Basin in Texas. For further
information see: www.lexingtonresources.com
Contact North America: Investor Relations, Lexington Resources, Inc.
Phone: Toll Free (888) 848-7377 or (702) 382-5139 Fax: (702) 385-1202
e-mail: info@lexingtonresources.com
Contact Europe: International Market Trend AG
Phone: 41 43 888 67 00 Fax: 41 43 888 67 09
Stock Exchange Information: Symbol: OTCBB – LXRS Frankfurt/Berlin Symbol –
LXR, WKN: AØBKLP, ISN: US5295611Ø25
SAFE HARBOR STATEMENT
THIS NEWS RELEASE CONTAINS “FORWARD-LOOKING STATEMENTS”, AS THAT TERM IS
DEFINED IN SECTION 27A OF THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED, AND SECTION 21E OF THE UNITED STATES SECURITIES EXCHANGE ACT OF
1934, AS AMENDED. STATEMENTS IN THIS NEWS RELEASE, WHICH ARE NOT PURELY
HISTORICAL, ARE FORWARD-LOOKING STATEMENTS AND INCLUDE ANY STATEMENTS
REGARDING BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS REGARDING THE FUTURE.
EXCEPT FOR THE HISTORICAL INFORMATION PRESENTED HEREIN, MATTERS DISCUSSED
IN THIS NEWS RELEASE CONTAIN FORWARD-LOOKING STATEMENTS THAT ARE SUBJECT TO
CERTAIN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER
MATERIALLY FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED
OR IMPLIED BY SUCH STATEMENTS. STATEMENTS THAT ARE NOT HISTORICAL FACTS,
INCLUDING STATEMENTS THAT ARE PRECEDED BY, FOLLOWED BY, OR THAT INCLUDE
SUCH WORDS AS “ESTIMATE,” “ANTICIPATE,” “BELIEVE,” “PLAN” OR “EXPECT” OR
SIMILAR STATEMENTS ARE FORWARD-LOOKING STATEMENTS. RISKS AND UNCERTAINTIES
FOR THE COMPANY INCLUDE, BUT ARE NOT LIMITED TO, THE RISKS ASSOCIATED WITH
PROPERTY DEVELOPMENT AND FUNDING AS WELL AS THE RISKS SHOWN IN THE
COMPANY’S MOST RECENT ANNUAL REPORT ON FORM 10-KSB AND ON FORM 10-QSB AND
FROM TIME-TO-TIME IN OTHER PUBLICLY AVAILABLE INFORMATION REGARDING THE
COMPANY. OTHER RISKS INCLUDE RISKS ASSOCIATED WITH THE REGULATORY APPROVAL
PROCESS, COMPETITIVE COMPANIES, FUTURE CAPITAL REQUIREMENTS AND THE
COMPANY’S ABILITY AND LEVEL OF SUPPORT FOR ITS EXPLORATION AND DEVELOPMENT
ACTIVITIES. THERE CAN BE NO ASSURANCE THAT THE COMPANY’S DEVELOPMENT
EFFORTS WILL SUCCEED AND THE COMPANY WILL ULTIMATELY ACHIEVE COMMERCIAL
SUCCESS. THESE FORWARD-LOOKING STATEMENTS ARE MADE AS OF THE DATE OF THIS
NEWS RELEASE, AND THE COMPANY ASSUMES NO OBLIGATION TO UPDATE THE
FORWARD-LOOKING STATEMENTS, OR TO UPDATE THE REASONS WHY ACTUAL RESULTS
COULD DIFFER FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS.
ALTHOUGH THE COMPANY BELIEVES THAT THE BELIEFS, PLANS, EXPECTATIONS AND
INTENTIONS CONTAINED IN THIS NEWS RELEASE ARE REASONABLE, THERE CAN BE NO
ASSURANCE THOSE BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS WILL PROVE TO BE
ACCURATE. INVESTORS SHOULD CONSIDER ALL OF THE INFORMATION SET FORTH HEREIN
AND SHOULD ALSO REFER TO THE RISK FACTORS DISCLOSED IN THE COMPANY’S
PERIODIC REPORTS FILED FROM TIME-TO-TIME WITH THE UNITED STATES SECURITIES
AND EXCHANGE COMMISSION.
THIS NEWS RELEASE HAS BEEN PREPARED BY MANAGEMENT OF THE COMPANY WHO TAKES
FULL RESPONSIBILITY FOR ITS CONTENTS. EACH OF THE NASD, THE SEC AND THE
OTCBB NEITHER APPROVES NOR DISAPPROVES OF THE CONTENTS OF THIS NEWS
RELEASE. THIS NEWS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE
SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE
SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE
WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE
SECURITIES LAWS OF ANY SUCH JURISDICTION.
(c)DGAP 16.03.2006
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language: English
emitter: Lexington Resources, Inc.
7473 West Lake Mead Road
89128 Las Vegas, Nevada Vereinigte Staaten von Amerika
phone: +1 604 602 1125
fax: +1 604 608 3399
email: grant@grantatkins.de
WWW: www.lexingtonresources.com
ISIN: US5295611025
WKN: A0BKLP
indexes:
stockmarkets: Freiverkehr in Berlin-Bremen; Open Market in Frankfurt
End of News DGAP News-Service
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