NMEX Clarifies Ownership in West Lenapah Gas Project
SALT LAKE CITY, April 23, 2021 - Northern Minerals & Exploration Ltd. (OTC PINK:NMEX) entered into an agreement to increase its ownership percentage of Calihoma Partners LLC. on April 13, 2021. Calihoma Partners LLC owns 60% of the West Lenapah Gas Project.
NMEX has the right to acquire/increase its ownership up to an additional 27% with capital contributions. That is the before payout percentage that would be the basis for any distributions to Calihoma members. The after payout percentage would be a little over 56%. With the remaining funding coming from another source, then NMEX after payout percentage would be no less than 38%.
The following provides information on the West Lenapah Natural Gas Project in Nowata County located in Northeastern Oklahoma:
West Lenapah Natural Gas Project:
The West Lenapah Gas Project is a joint venture project to operate, produce and develop a natural gas asset covering approximately 40,000 gross acres, and 22,500 net acres of largely contiguous leasehold and 1200 miles of associated gathering lines. A total of 86 wellbores are on this acreage of which currently 25 are producing 250 to 300 MCF of natural gas per day.
The Natural Gas Reserves allocated for the West Lenapah Gas Project are estimated to be 8.3 BCF of proved developed producing, proved developed non-producing, proved behind pipe Mississippian and proved behind pipe coal seam gas. Future Net Cash Flow to 100% of the working interest undiscounted is $8,824,500.
The short-term plans over the next three months are to rework and bring into production approximately 15 more gas wells in the West Lenapah area, which is projected to add an additional 500 MCF per day and by the end of 2021 plans are to be operating and producing a total of 60 wells producing between 1000 and 1500 MCF per day.
Northern Minerals & Exploration ("NMEX") is an emerging publicly traded company focused on oil and gas exploration & production, gold & silver exploration in Nevada & real estate development projects in Mexico.
Management is very optimistic about the future of NMEX as it is evaluating many opportunities for growth and expansion of the Company.
Contact: Noel Schaefer
Forward Looking Statements: Statements which are not historical facts contained in this release are forward looking statements that involve risks and uncertainties, including but not limited to, the effect of economic conditions, the impact of competition, the results of financing efforts, changes in consumers' preferences and trends. The words "estimate," "possible," "seeking," and similar expressions identify forward-looking statements, which speak only to the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, because of new information, future events, or otherwise. Future events and actual results may differ materially from those set forth herein, contemplated by, or underlying the forward-looking statements. The information herein is subject to change without notice. Northern Minerals & Exploration Ltd. shall not be liable for technical or editorial errors or omissions contained herein.
View source version on accesswire.com: