Matrixx Resource Holdings, Inc.
OTC Bulletin Board : MXXR

Matrixx Resource Holdings, Inc.

August 10, 2006 10:24 ET

Matrixx Resource Holdings, Inc.: Drilling Update on Clovelly South Prospect

LOS ANGELES, CALIFORNIA--(CCNMatthews - Aug. 10, 2006) - Matrixx Resource Holdings, Inc. (OTCBB:MXXR) announced today an update on the Clovelly South Prospect.

The Company announced last week that it had encountered a charged sand at 14,280 feet, which is believed to be a stringer sand located approximately 50 feet above the anticipated "M" sand. This is described as a small layer of sand in the earth that typically has oil and gas properties. It is expected that the objective sand known as the "M" sand could be as near as 50 feet below this stringer sand.

While drilling, the well encountered a gas flow and pressure. It was required at that point to increase the weight of the mud in the well to contain the pressure while circulating the gas out of the hole in order to maintain positive control of the well.

Subsequently, it has been determined that to continue drilling in order to pierce the sand, casing the entire hole would be required to protect the well. Thus, it would be necessary to remove the entire bottom hole assembly and drilling shaft prior to casing the well.

While pulling the assembly out of the hole, the drill pipe engaged debris in the well bore rendering it unable to rotate. In consideration of our significant progress, it is imperative at this point we secure and protect the well. Techniques known as fishing will occur in order to recover the drill shaft and bit. Until such event occurs, we will continue to circulate mud at weights necessary to control the gas and pressure.

Once secure, recovery of the pipe will take place. This may occur by using wash pipe, which is pipe layered over the drill pipe and lowered down the well over the area which contains the debris. Should this be ineffective, it is likely sidetracking the well and continuing to our objective will take place. This could take additional time not previously anticipated. However, although disappointed by the delays, we are pleased that the well continues to show significant progress in achieving and completing our objective.

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.
    Catherine Thompson
    Media & Investor Relations
    (310) 456-3199
    (310) 456-1778 (FAX)