DALLAS, TX / ACCESSWIRE / February 20, 2024 / MDM Permian, Inc. (OTC PINK:MDMP) is pleased to announce as the Managing Partner of Essence Wells, LP a recent capital infusion of $500,000 from two accredited, sophisticated individual investors. To uphold our prior commitments to minimize shareholder dilution and maximize shareholder value, MDM is raising this capital through a 506 C Reg D offering. The objective is to generate income through the wells, benefiting both the investors of our company and MDM in its role as the Managing Partner of Essence Wells, LP.
MDM Permian, Inc. will serve as one of two Managing Partners of Essence Wells, LP. The Managing Partners will have complete and exclusive power (except as limited by the Partnership Agreement and applicable law) to manage and control the business, properties, and affairs of the Partnership. The Managing Partners will control the day-to-day operations of the Partnership.
The two investments come from MDM Permian, Inc. as one of the managing partners. This investment by MDM further illustrates MDM's belief and commitment in the projects outlined in the Reg D offering. The other investment has come from FireDream Resources, LLC, the majority stockholder of MDM Permian, Inc. This investment underscores MDM's steadfast dedication to the potential inherent in the projects outlined for Essence Wells. It also illuminates management's commitment to minimize dilution to the current shareholders of MDM.
Essence will use the allocated capital to rework one of the existing wells situated on our East Texas Basin acreage. The designated operator for this project anticipates the completion of the work by mid-February. Conservative estimates on the potential initial production from the well are anticipated to be 2000/mcf of gas a month and 1050 barrels of oil. Assuming production at these levels, the anticipated gross revenue, after factoring in landowner royalties, state severance taxes, and operating expenses, could exceed $55,000, contingent upon prevailing oil and gas prices.
Simultaneously, the other project scheduled to be reworked will be the Ogelsby well in the Permian Basin. The Ogelsby log shows 5 separate producible layers in the target Wichita Albany formation within the existing well. Our geologist and the original drilling company have both independently identified the same 5 layers in the Wichita Albany as potentially productive. Expected production from the Wichita Albany formation in this well, based on comparable wells in the local area, is estimated to be 1500 barrels per month of oil, with no gas. Given that Essence is acquiring only a 50% working interest in the well, the income generated from 1500 barrels per month is estimated to generate over $26,000 per month for investors and over $44,000 in income for MDM, after accounting for all expenses.
Mark Warner, President and CEO of MDM Permian said, "We are excited to begin using the capital on these two wells to demonstrate to our investors that we are making progress to significantly increase shareholder value. Reworking these wells stands as the best use of the capital available to us at the present time. This approach to income generation for MDM aligns with our commitment to MDMP shareholders to minimize shareholder dilution as much as possible."
About MDM Permian Inc
MDM Permian, Inc. is an emerging oil and gas exploration and production company committed to delivering sustainable energy solutions. With a focus on responsible resource extraction, operational excellence, and environmental stewardship, MDM Permian, Inc. aims to meet the growing energy demands while minimizing its ecological footprint. The company's diverse portfolio spans across multiple regions, driving economic growth and creating value for its stockholders and stakeholders.
For media inquiries, contact:
Rachel D. Green
V.P. Investor Relations
469-252-3603
rgreen@mdmpermian.com
SOURCE: MDM Permian, Inc.
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