Tidelands Oil & Gas Corporation Announces $810,000 Monthly Revenue Deal with Genesis Oil & Gas Company

Tidelands Oil & Gas Corporation, a 17-year veteran of oil and gas development in Southwest Texas, has signed a contract with Genesis Oil & Gas Company to develop a large oil and gas project. The project, which involves the drilling of 160 wells, is expected to generate substantial gross and net revenues. According to the contract, the project is estimated to bring in $810,000 USD per month, after accounting for landowner royalties.

Key Takeaways:

The contract between Tidelands Oil & Gas Corporation and Genesis Oil & Gas Company involves the development of 160 wells in Southwest Texas.
The project is estimated to generate $810,000 USD in revenue per month, after accounting for landowner royalties.
Genesis will fund the development of Tidelands reserves, including lease bonus money on option acreage, and will receive a 60% interest in the project's profits.
Tidelands Oil and Gas Corporation will receive a 40% interest in the project's profits, including a 25% interest before payout and an additional 15% after payout.
The total drilling commitment is $10 million USD, with Genesis promising to drill two wells per month for the first six months and four wells per month thereafter.
The project is expected to be completed within a four-year period, with Genesis committing to $2.5 million USD per year over the duration of the contract.
All gas produced by the wells will be dedicated to the Sonora Gas Pipeline LLC and the Rio Bravo Energy LLC.

Statistics:

Estimated monthly revenue from the project: $810,000 USD
Total drilling commitment: $10 million USD
Total four-year commitment by Genesis: $2.5 million USD per year
Total number of wells to be drilled: 160

Sources:

Tidelands Oil & Gas Corporation press release, dated December 8
Genesis Oil & Gas Company press release, dated December 8
Sonora Gas Pipeline LLC press release, dated December 8
Rio Bravo Energy LLC press release, dated December 8