Northumberland Resources, Inc. report the following annual corporate update about the company and its recent business activities.
Oil Lease Acquisitions
On March 31st, 2011 Northumberland was a successful bidder at the Evenson Auctioneers Inc. oil production auction in Wichita, Kansas. We acquired the Mason, Thompson, Keyes and Harrell "D" leases inclusive of all production and improvements. The leases were purchased at auction from REH Oil & Gas LLC. The leases consist of 280 acres located in the Sawyer field in Pratt County, Kansas and 120 acres located in the Wildcat and Sawyer fields.
On June 11, 2011, the Company purchased a 30 percent working interest on an 81.5 percent net revenue interest in a joint oil and gas well drill project in Cowley County, KS. The well was successful and designated a "New Discovery."
On July 7, 2011, the Company purchased a 20 percent working interest on a 69.5 percent net revenue interest in two proven and producing oil wells located in Cowley County, KS.
In the fall of 2011 we increased our oil lease holdings with the acquisition of an additional 1040 acres of productive oil and gas leases. Two leases located in Pratt County, KS were purchased at auction consisting of six wells with a 100% Working Interest of 82% Net Revenue Interest. These six wells leases are directly adjacent to our existing leases and will integrate the 6 fields and maximize efficiency and production. Included in the purchase is a gas compression station which will enhance flows from current operations.
In September 2011 we purchased a 30% interest in seven wells from Lasso Energy, LLC's 80% Net Revenue Interest in three leases in Barton and Stafford County, Kansas with seven active wells. There are four oil producing wells, two disposal wells and one injection well. The three leases contain 680 gross acres. The current gross oil production combined is 12.25 BOPD and the current net oil production is 10.19 BOPD. We have estimated the new projects to show a 20 to 30% annual return on investment.
The Company currently has 27 Oil, Gas and SWD wells, with interests in 2160 acres of prime leaseholds. On June 28th, 2011, we shipped our inaugural production from the Pratt Oil and Gas Project storage tanks to Parnon Gathering, Inc., the purchaser of our oil production on the Mason and Keyes leases. Gas sales from the Company's leases are averaging 45 Mcf daily.
Financing Activities
In 2011 the Company raised over $1.2 million dollars in cash from sales of its securities in private offerings. These funds have been used to expand operations and acquire additional oil leases.
Management
On January 15, 2011, Dr. Fortunato Villamagna was appointed as a director, President and Chief Executive Officer of the Company. Dr. Fortunato Villamagna has over 25 years of domestic and international experience in the mining services, specialty and bulk chemicals, capital equipment, bioenergy, aerospace and energetic materials businesses. Dr. Villamagna holds a PhD in Chemistry and MBA in Global Management from the (University), and has worked throughout North America, Europe, Australia and West Africa. Dr. Villamagna's extensive business experience includes serving as director and CEO of UTEC Inc., a 50 year old energetic material testing, development and manufacturing company and Department of Defense contractor; President of BioEnergy Systems, a technology company serving the biofuels industry; Vice President - Business Development for American Pacific Corporation (AMPAC), a publically listed company involved with energetic products used primarily in space flight, aerospace and defense systems and water treatment equipment; Vice President Technology, Americas and Europe for Orica Inc., an Australian-owned, publicly-listed global company, and global leader in mining products and services; Director of Bulk Delivered Products for Energetic Solutions, Inc., a part of UK-based ICI Explosive. Dr. Villamagna also serves as Secretary and CFO of Lucky Boy Silver Corp., a gold and silver exploration company.
On January 17, 2011 we appointed Peter Hewitt as director and to act as corporate secretary and CFO of our company. Mr. Hewitt has over 20 years experience working with blue chip companies such as TVR Sports Cars Ltd and Findel Plc.
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