Matrixx Resource Holdings, Inc.
OTC Bulletin Board : MXXR

Matrixx Resource Holdings, Inc.

June 04, 2007 04:00 ET

Matrixx to Acquire Easter Field Prospect

LOS ANGELES, CALIFORNIA--(Marketwire - June 4, 2007) - Matrixx Resource Holdings, Inc. (OTCBB:MXXR), announced today that it has agreed in principle to acquire a significant interest in the Oil and Gas Prospect known as the Easter Prospect. The agreement calls for Matrixx to acquire a 37.5% interest covering 601 acres of land in Colorado County, Texas known as the Easter Prospect.

The first well will be drilled to the "Yegua Sand" at a depth of approximately 6,800 feet. Ten wells in the Yegua Sand within the Easter Field have produced cumulatively over 10 BCFG within 1.5 miles center of our expected test sand. Additionally, two wells have produced from three separate Yegua Sands on our structure. Each well produced 2.5 BCFG at half pressure depletion. Geological survey shows both wells to be flankish on the structure, whereby the test well is expected to be updip on the structure. With three zones recording hydrocarbon tests and production of 5 BCFG with only half pressure depletion, we expect no less than 5 BCFG in the center of the structure from the test well.

Developmental wells are expected to be drilled to both the "Miocine Sands" and the "Wilcox Sands". Wells producing commercial gas in the field have been found in the Miocine 1,760 and the "Stranger Sand". Additionally, commercial gas has been found at the Miocine 2,200, 3,300, 3,900, and 4,200 Sands within the Easter Field. The Wilcox Sands in this field are not yet proven; however, a test to 9,000 feet will be undertaken towards the end of this year.

The Yegua test is expected to begin in early August, 2007. Recoverable reserves are estimated to be 5 BCFG for the Yegua Sand, 5 BCFG for the Wilcox Sand, and 2 BCFG for the Miocine Sand. Total expected reserves are 12 BCFG.

Closing on this acquisition is expected within 15 days. Matrixx will continue to seek additional opportunities to add value to its property holdings through acquisition. Matrixx believes that these additional assets will provide the Company and its shareholders a much-improved increase in shareholder value. Further, the Company will be filing the required forms and exhibits with the SEC and sending notice to shareholders on a timely basis. Terms and conditions of the transaction will also be provided in the aforementioned notices.

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 complete the proposed acquisition(s), the results of Matrixx's due diligence review of the candidate(s), the success of the business of the acquisition candidate(s), including the ability of Matrixx to continue 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 and technologies, competitive factors, timing, and other risks described in the Company's SEC reports and filings.

Contact Information

  • Matrixx Resource Holdings, Inc.
    Media & Investor Relations:
    Catherine Thompson
    (310) 456-3199
    (310) 456-1778 (FAX)