Freedom buys interest in Okmulgee County development project

Journal Record, The (Oklahoma City), Aug 28, 2002

SALT LAKE CITY (JR) -- Freedom Oil & Gas has agreed to buy a 37.5 percent working interest in the Ewell Prospect in Okmulgee County, Okla., from Hewitt Energy Group.

Freedom is a Salt Lake City-based subsidiary of The Majestic Cos.

The Ewell interest covers 800 mineral acres under lease and was sold for 100,000 shares of Majestic preferred stock, which are convertible into 500,000 common shares.

The initial operations planned on the Ewell prospect include drilling a deep well to test the Wilcox and Arbuckle zones. Freedom's working interest will be 25 percent in that well.

Freedom also plans recompletion of up to six existing wells to produce "behind pipe" natural gas reserves. Freedom's working interest will be 37.5 percent in the recompleted wells.

The operator, Houseco Petroleum, has also committed to connect seven existing wells with expected production of 100,000 cubic feet per day of natural gas and 25 barrels of oil per day. Freedom's working interest is "paid-up" through these initial planned operations.

The Ewell prospect is a redevelopment project in a field that has produced oil reserves primarily from the Wilcox zone.