United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1933
Date of Report: February 24, 2011
Commission File Number: 001-07894
MATRIXX RESOURCE HOLDINGS, INC.
Delaware 95-2312900
(Jurisdiction of Incorporation) (I.R.S. Employer Identification No.)
2150 Latigo Canyon Rd., Malibu, CA 90265
(Address of principal executive offices)
23852 Pacific Coast Hwy, #167 Malibu, CA 90265
(Former address of principal executive offices)
Registrant's telephone number, including area code:
(631) 759-0653
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
SECTION 1 - REGISTRANT'S BUSINESS AND OPERATIONS
ITEM 2.01 COMPLETION OF ACQUISITION OF ASSETS.
On February 15, 2011, the Registrant, a Delaware corporation ("Registrant" or
the "Company"), finalized and completed the acquisition of a 25% working
interest in an 82.2 acre oil and gas lease known as the Sanger Heirs #1 from
Tejones Operating Company. Pursuant to the terms of the Agreement, the Company
purchased a 25% working interest in the Sanger Heirs #1 lease in exchange for
$200,000 of restricted shares of the Company. The $200,000 payment includes the
Company's prospect fee and dry hole costs up the casing point. The lease is an
82.2 acre oil and gas lease in Live Oak County, Texas. The terms of the
Agreement further obligate the Company to pay its proportionate share of the
completion cost of the well.
The Sanger-Heirs (Wilcox) Prospect is located northeast of the Rhode Ranch East
Field. This field has produced 53 BCF of gas from the Upper Wilcox sand. The 7
Slick Sand wells produced 50.3 BCF of gas. The Rhode Ranch East Field is located
between two down-to-the-coast growth faults. These faults created a large
anticline structure that trapped the Upper Wilcox Sand section. A second major
Upper Wilcox field was discovered northeast adjacent of the prospect in Elms
Field. It is on strike with our prospect and East Rhode Ranch Field. The 7 best
Slick wells in this field produced 43.6 BCF of gas. The field is similar to
Rhode Ranch East in that it is located between two down-to-the-coast faults and
is of similar size. A third Wilcox Slick Sand field is located east and adjacent
of the prospect. This is a small field consisting of 4 wells drilled deep enough
to test the Slick Sands. The three best wells in this field produced 7.2 BCF of
gas. This trap is an upthrown closure against the eastern most fault. There is a
structural reversal of dip between this field and the Hanson-Sanger 1-B well.
This well traps in the Slick Sand against an up-to-the-coast fault seen on
seismic. A fourth Wilcox Slick Sand field is south of the acreage in Cloeter and
Sanger Ranch Fields. Each field has one well, which produced in the Slick Sand.
These two wells produced 3.27 BCF of gas out of an anticline bordered to the
west by a substantial up-to-the-coast fault.
The prospective anticline is bordered to the northeast by Arco-Riser #3 well and
the M.P.S. Prod.-Riser #3. The top of the Slick Sand is at -6833' and -6808'
respectively. This shows a 25 foot gain of structure to the southwest. On the
southwest side of the structure the Southland-Sanger #1 well was drilled and the
top of the Slick Sand came in at -6836'. This being flat to the Arco-Riser #3
well is less than one mile to the northeast. On the east side of the drill site
there is a small down-to-the-coast fault seen seismically and in the Arco and
M.P.S. producing wells. East of this north/south fault is a substantial
up-to-the-coast fault seen seismically. This fault is believed to have created
the hydrocarbon trap responsible for the gas production found in the
Hanson-Sanger #1-B well. The four wells previously mentioned are believed to be
on the flanks of an anticline that crests near the proposed drilling location.
The 3-D seismic data show the structural high to be tested by this prospect to
be 62' high to the M.P.S. producer - Riser #3 well, which is the highest well on
this anticline. There is approximately 100' of Slick Sand and about 50' of
Luling WX Sand found in this well. There is a high probability that Slick Sand
will have a productive column of gas of 40' to 50' of sand at the top of the
structure. Also the Luling WX Sand could have 20 plus feet of pay sand. The
productive Slick Sand sections in the best producing wells of East Rhode Ranch
and Elms Fields had pay sections over 100' thick and produced 10 plus BCF of gas
per well.
The Sanger Heirs #1 well sits on the Wilcox Sands. Said sands in this area are
very prolific producers and do not require any type of stimulation to get the
maximum reserves from the reservoirs. Tejones expects to encounter multiple pay
zones in the aforementioned well as much as 60 to 100 feet of pay.
The Wilcox formation is known to produce an average of 600 barrels of oil per
acre foot. For example, in 2007, the US Geological Survey estimated that there
are 110 million barrels of un-discovered oil, and approximately 3 trillion cubic
feet of gas and over 500 million barrels of natural gas liquids throughout the
Wilcox formation.
USGS data provided proving an average of 600 bbls per acre foot on 100 foot of
potential pay over 82.2 acres provides for a potential of six million bbls over
the lifetime.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the Registrant and
in the capacities and on the date indicated.
/S/ Catherine Thompson
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Registrant
/S/ Catherine Thompson
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Signatures
Catherine A. Thompson, CFO, Director
2/24/2011
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Date