SOURCE: West Texas Resources, Inc.

August 18, 2017 09:30 ET

West Texas Resources Signs Letter of Intent for Acquisition of Oil and Gas Properties

FRISCO, TX--(Marketwired - August 18, 2017) - West Texas Resources, Inc. (OTCQX: WTXR), a Texas-based independent oil and gas company is pleased to announce the execution of a letter of intent to acquire oil and gas properties from an independent oil and gas company in Bakersfield, California. The acquisition, mostly oil properties, is located in Kern County, California. WTXR will be paying approximately $4 million in cash and stock for what is estimated to be $50 million in proved reserved as determined by an accredited oil and gas engineering firm. These are producing properties.

William A. Sawyer, the CEO of WTXR, commented that "We believe these properties have considerable upside and will give us a major improvement in our asset base and cash flow."

The letter of intent is non-binding and the closing of the transaction is subject to customary conditions, including WTXR's completion of a due diligence inquiry to its satisfaction, the negotiation and execution of definitive agreements and WTXR's ability to raise the capital needed to acquire the properties.

About West Texas Resources, Inc.

West Texas Resources, Inc. is engaged in the business of oil and gas exploration and development in North America. The Company's strategy is to pursue strategic acquisitions of interests in oil and gas properties in partnership with oil and gas producers, including prospects with proven and unproven reserves, which it believes to have development potential. The Company targets both new and existing fields and producing wells to be revitalized.

Safe Harbor for 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 Kern County oil and gas properties. 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 raise the capital needed to acquire the Kern County properties on commercially reasonable terms, if at all, the risk that our due diligence inquiry into the Kern County properties may be unsatisfactory, the risk that we may not be able to successfully negotiate the definitive agreement for the acquisition of the Kern County properties, , the risk that the Kern County properties, if acquired, may not be commercially productive, the risk that we may not be able to acquire the additional working capital with which to exploit the acquired the Kern County properties on 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, 2016 filed with the SEC on February 10, 2017 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.

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