Next Bridge Hydrocarbons, Inc. (Next Bridge) announced the signing of a Letter of Intent (LOI) with McCabe Petroleum Corporation (MPC) to transfer MPC’s 40% interest in the Louisiana Heritage Play (LHP) to Next Bridge. Closing of this operation is planned before December 31, 2024.
This acquisition will allow Next Bridge to strengthen its portfolio of oil and natural gas assets, primarily located in Texas, Louisiana and Oklahoma. In exchange for reimbursement of MPC’s expenses incurred in securing the LHP, which currently do not exceed $600,000, MPC cedes its 75% net interest in the LHP’s production prospects, proportionately reduced, while retaining an interest of dominant royalty.
Asset Expansion in Louisiana Heritage Play
The Louisiana Heritage Play includes several identified drilling prospects spread across several parishes in southern Louisiana. The primary target formations are the Tuscaloosa and Wilcox sands, renowned for their productivity and exploration potential in the region. MPC has already begun the process of securing land for the first prospect and has started the review of titles for the second. Title reviews for third and fourth prospects will begin soon.
The world-class exploration team that created the LHP prospects uses advanced deep-water 3D technologies, including wide-azimuth and reverse-time migration processing. This technological approach allows more precise and efficient exploration of productive sand reservoirs. Additionally, the LHP’s onshore location in southern Louisiana offers significant savings in drilling, completion and production costs compared to offshore operations.
Strategic and Economic Benefits
LHP’s geographic location also facilitates access to available pipelines and liquefied natural gas (LNG) markets located in Lake Charles and Plaquemines. In addition, the favorable regulatory framework and attractive economic conditions of the State of Louisiana reinforce the attractiveness of this acquisition for Next Bridge.
Next Bridge’s technical consultants will work closely with the lead generation team to continue to explore additional opportunities within the available 3D data set. Despite the risks inherent in any exploration, the P10 potential of these prospects represents several trillion cubic feet (TCF) of reserves, providing promising prospects for the company’s future.
Management Vision
Greg McCabe, President and CEO of Next Bridge, said: “With the addition of LHP to our asset portfolio, we are expanding our focus on becoming a leading independent oil and gas company, providing opportunities high-tech, high-impact exploration project. As we continue to grow in this exciting direction, we follow in the footsteps of legendary explorers who sought world-class reserves on the Gulf Coast. We are boldly moving forward in our mission to reinvent Next Bridge, continuing the proud tradition of America’s independent producers identifying, capturing and developing new exploration opportunities to secure our country’s energy independence. »
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