TXO Partners Announces 3 TCFE Natural Gas Potential in Mancos Shale in San Juan Basin By Investing.com

FORT WORTH, Texas–( BUSINESS WIRE )–TXO Partners, LP (NYSE: TXO ) is designed as a natural resources production company dedicated to distributing current cash returns while delivering long-term value to unitholders. This strategy is based on a long-term, low-risk asset base, together with strong financial management.

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TXO has built a portfolio of oil and gas rich assets with enormous potential for development. The confidence we have in the performance of these properties is the foundation for our premier distribution company, said Bob R. Simpson, President and Chief Executive Officer. With this perspective, our technical team has identified another outstanding game within TXO’s vast production base. The Mancos Shale is an upcoming, giant field where we hold a position of 58,500 contiguous acres held by production. The target contains nearly 3 Tcfe of natural gas potential. On an oil equivalent basis, we believe this could represent as much as five times our current total reserve base. The catalyst for action in the development of this project is the commodity price, and we expect a strong natural gas economy in the future.

We believe the development of the Mancos Shale will be a game changer for our reserves and production potential, continued Gary D. Simpson, President of Production and Development. TXO surfaces and operations are top notch. Offset drilling on the adjacent surface confirmed the results of the wells. Taking into account the all important criteria of “reservoir characteristics, surface location, productivity data and access to infrastructure”, we have identified a tactical block of 3,520 hectares as a Phase I reserve development and monetization, representing approximately 6% of our current Mancos position. Specifically, our in-house engineers estimate that this one location contains approximately 200 to 300 Bcfe of natural gas with an estimated 25 Bcfe per well and has the potential to nearly double our existing natural gas reserves. It is important to note that the exploitation company’s hectares are kept in production without a lease expiry date. We expect drilling, development and monetization in an economically favorable time and pace. We believe this highly influential shale project will deliver exceptional value to our owners.

For perspective, Appendix A reflects a summary of our Mancos Play Phase I project within the scope of a total of 3 Tcfe of captive potential, which is more than 58,000 contiguous acres. Current cash flow from all activities will be allocated to capital investment decisions, unit allocation and debt management.

San Juan Basin – Mancos Shale Play
Overall natural gas resource potential “ 3 TCFE on 58,500 hectares

Within the basin, TXO has water rights, company-owned acreage and SWD and an option for key gas gathering systems.

Summary of Phase 1

• ~3,520 ac = <6% TXO In total (EPA:) Mancos surface location
• 8-12, 15K’ wells – 25+ bcf per well
• 200-300 bcf of gross reserves are expected

About TXO Partners, LP

TXO Partners, LP is a master limited partnership focused on the acquisition, development, optimization and exploitation of conventional oil, natural gas and natural gas liquids reserves in North America. Current TXO acreage is concentrated in the Permian Basin in West Texas and New Mexico, the San Juan Basin in New Mexico and Colorado, and the Williston Basin in Montana and North Dakota.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include words such as may, assume, forecast, could, should, will, plan, believe , predict, intend, estimate, expect, project, budget and similar expressions, although not all forward-looking statements contain such identifying words. These forward-looking statements include the resource potential of our Mancos Play acreage in the San Juan Basin, the future production and potential economic value of our Mancos acreage, our ability to realize anticipated benefits from our Mancos acreage, the impacts of the Mancos acreage on our reserves and production, our expectations of positive future natural gas price environments, the timing, amount and area of ​​future focus of investments in our assets and the impact of future changes in commodity prices. These forward-looking statements are based on management’s current belief, based on currently available information, about the outcome and timing of future events at the time such statement is made, and it is possible that the results described in this press release will not be achieved. Our assumptions and future performance are subject to a wide range of business risks, uncertainties and factors, including, without limitation, the following: our ability to meet distribution expectations and projections; volatility of oil, natural gas and NGL prices; our ability to safely and effectively manage TXO’s assets; uncertainties surrounding our estimated oil, natural gas and NGL reserves, including the impact of declining commodity prices on the economic productivity of such reserves and in projecting future production rates; and risks and other factors disclosed in TXO’s filings with the SEC, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

All forward-looking statements speak only as of the date they are made and, except as required by law, TXO undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or another way. New factors arise from time to time, and it is not possible for TXO to predict all such factors.

Note for investors

The SEC allows oil and gas companies to disclose in their filings with the SEC only proved, probable and possible reserves that meet the SEC’s definitions of such conditions. TXO may use certain broader terms such as natural gas potential, natural gas resource potential, gross reserves, total reserve base and total possible value in its communications with investors that SEC guidance strictly prohibits TXO from including in SEC filings . These types of estimates do not represent, and are not intended to represent, any category of reserves based on SEC definitions, are more speculative in nature than estimates of proved, probable and possible reserves and do not constitute “reserves” within the meaning of SEC rules. These estimates are subject to greater uncertainties, and are accordingly subject to a significantly greater risk that they will actually be realized. Investors are urged to carefully consider the disclosures and risk factors in TXO’s SEC filings.

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TXO partners
W. Clum
President, Business Operations and CFO
817.334.7800
ir@txopartners.com

Source: TXO Partners, LP