Av-Tech is a local South Texas oil and gas operator who has over the past few years accumulated by acquisition the petroleum leases for the entire central portion of the City of Gonzales which resides within the centre of the established Gonzales Oil Field. Nobel Petroleum LLC acquired a 75% working interest in respect of an initial leasehold area of 1,800 acres (increased to 2,250 acres by additional primary leasing), comprising approximately 900 leases within the centre of the township of the City of Gonzales, from Av-Tech Oil & Gas LLC (“Av-Tech”) pursuant to an agreement dated 16 November 2016 (“Joint Operating Agreement”) made between Nobel Petroleum LLC, Av-Tech and Landex Petroleum LLC (“Landex”).
Av-Tech and Landex are both parties to the Joint Operating Agreement covering the operational activities over the leasehold area in which Nobel LLC has its 75% working interest, known as the “area of mutual interest” (“AMI”). Although they do not themselves participate in the operations at the AMI, Av-Tech retains a 20% interest and Landex has a 5% interest in the AMI and thus they contribute a combined 25% of the operational costs associated with the AMI.
Av-Tech Oil & Gas LLC is directed by Rick McRae who founded McRae Energy in 1983 working oil and gas in South Texas. His team has drilled and participated in over 250 Austin Chalk/Buda wells ranging from 6,000 to 12,000 feet in depth. Approximately 125 of these were horizontal wells. The company owned its own drilling rigs with approximately 200 employees under Mr. McRae’s management, overseeing some 40,000 acres of leases. Mr. McRae acts as retained consultant and is overseeing the initial drilling activities of the group.
Landex Petroleum LLC, run by experienced local oilman, Mr. James W. Landrum.