Flowtex Energy acquires producing acreage in east Texas
Flowtex Energy has completed the acquisition of significant producing acreage in east Texas, enabling the company to more efficiently increase output while decreasing its time to market.
Flowtex Energy is an exploration company specializing in the acquisition and development of domestic oil and natural gas wells. Headquartered in Austin, Texas, a company statement said acquiring the large field complements the Flowtex strategy of growth through acquisition and development.
“We're able to acquire productive fields like these, leveraging the prior research and development, and increasing our available output because so many companies were over-extended, forced to walk away from what they started—leaving a lot of oil in the ground,” according to Beau Flowers, Flowtex president.
Flowers said the company acquired the undervalued assets by using its expertise to efficiently operate the leases while reducing the risk.
“Success in the oil business is about efficiency,” he said. “In this case we already know there's a lot of oil so we just need to go produce it as efficiently as possible."
The east Texas site’s first workover has been significantly more successful than expected, Flowers said, adding that the initial plan is to bring five wells back into production.
He noted that one well—considered beyond repair—came back into production Jan. 8 and was stabilized with an initial production rate of 230 barrel of oil per day, double the expected production rate.
“This victory has the team very eager to move on to the next set of wells this month," Flowers said.
He said that Flowtex plans to continue acquiring under-performing assets.
"We've been in the oil business long enough to have seen many cycles and realize that right now, when the market is down, is the time to capitalize,” he explained. “We will be careful to make the best possible acquisitions, but, yes, we'll continue to expand when the opportunities arise and our team feels confident in the financials behind each project."
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