SOURCE: West Texas Resources

August 18, 2015 10:13 ET

West Texas Resources, Inc. to Acquire Mineral Leases Covering Approximately 37,000 Acres

FRISCO, TX--(Marketwired - Aug 18, 2015) - West Texas Resources, Inc. (OTCQX: WTXR), a Texas-based independent oil and gas company, today announced that it has entered into an agreement with Kiowa Oil Company to acquire non-operating leases covering approximately 37,702 gross mineral acres leased throughout the United States including 24,282 gross mineral acres in Montana and 7,487 gross mineral acres in North Dakota. Pursuant to which agreement with Kiowa Oil Company, West Texas Resources will acquire the leases in consideration of its issuance of shares of its common stock at the rate of $0.50 per share. The parties have agreed to engage an independent oil and gas valuation firm who will determine the fair market value of the non-operating leases. At the closing of its acquisition of the leases, West Texas Resources will issue to Kiowa Oil Company a number of its shares of common stock equal to the fair market value of the leases as determined by the independent oil and gas valuation firm, divided by $0.50. Kiowa Oil Company is a privately-held investment company controlled by Gary Bryant, the controlling shareholder of West Texas Resources. The parties expect the transaction to close in September 2015. 

According to John Kerr, CEO of West Texas Resources, "We are pleased to announce this important acquisition and believe that it will constitute a significant step forward in enhancing shareholder value." 

Forward-Looking Statements:
This press release contains forward-looking statements concerning West Texas Resources, Inc. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those forward-looking statements include statements regarding our expectations for the ability to acquire the operating leases and the profitability of those leases. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, the risk that we may not be able to acquire the operating leases, the risks that the leases, if acquired, may not be commercially productive and our ability to acquire the additional working capital with which to exploit the acquired leases may not be available under commercially reasonable terms, if at all, and those other risks set forth in West Texas Resources' annual report on Form 10-K for the fiscal year ended September 30, 2014 filed with the SEC on January 14, 2015 and subsequently filed quarterly reports on Form 10-Q. West Texas Resources, Inc. cautions readers not to place undue reliance on any forward-looking statements. West Texas Resources, Inc. does not undertake, and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.

Contact Information

  • Contact:
    John Kerr
    CEO
    West Texas Resources, Inc.
    972.712.2154