RainChief Energy Inc. (RCFEF) announced that the company has exercised its option with Nueva Oil & Gas Corporation to acquire a 90% working interest in the Gulf Jensen Prospect, an oil property located in New Mexico’s Permian Basin. Under the terms of the option and in accordance with the farmout agreement between the parties dated February 10, 2012, RainChief has paid a total of $110,000 to Nueve Oil & Gas in connection with the option exercise.
The Permian Basin has produced over 20 billion barrels of oil with a financial value that exceeds $2 trillion, based on today’s oil prices. The Basin produces 17% of total United States crude oil and represents 66% of Texas’ current oil production. Proven reserves are second only to Alaska and New Mexico’s portion of the Basin holds three of the 100 largest oil fields in the US.
RainChief CEO Paul Heney stated:
This is an important move for RainChief. We’re partnering with Nueva and Norman Mackenzie in what we believe is a very high quality oil property. An extensive engineering review of the open-hole electric logs from the original #1 Jensen strongly supports our plan to drill new offset oil wells. Analysis of the property and comparison with other similar geological structures and hydrocarbon production within this region of the Permian Basin supports our belief that the Gulf Jensen Prospect has very positive development potential.
RainChief Energy Inc.
885 West Georgia Street, Suite 1500
Vancouver, BC V6C 3E8 Canada
RainChief Energy is actively engaged in identifying, financing & developing oil & gas energy resource properties in North America, including the development of the Gulf Jensen Oil Prospect in New Mexico. The company continues to review additional resource properties that combine positive elements of short-term exploration & development costs with high potential for long-term success & financial return.