LAS VEGAS, June 3, 2005 (PRIMEZONE) -- Lexington Resources, Inc. (OTCBB:LXRS) (the "Company") is pleased to announce that it has entered into a definitive agreement to acquire a 75% working interest in approximately 3,000 net leasehold acres in Jack, Wise, and Palo Pinto Counties in the State of Texas as part of a 20+ Barnett Shale gas well horizontal drilling venture with a Texas based Limited partnership. The Barnett Shale drilling venture is the first expansion by the Company outside its Arkoma Basin gas drilling and production initiatives currently under development in the State of Oklahoma. The first well is expected to be spudded in August with parties to the venture agreeing to drill and complete all acquired acreage in less than two years.
Under the agreement to date, Lexington has a 75% working interest commitment and is responsible for its pro-rata share of acreage costs. In addition, the Company's contract operator, Oak Hills Drilling and Operating, LLC. ("Oak Hills") becomes the Operator for the project and contributes at least one drilling rig until project completion. Oak Hills is currently operating as a contract drilling operator of horizontal gas wells in the Barnett Shale.
Lexington's Drilling and Production Operations Manager, Douglas Humphreys commented, "We are glad to be working with Texas based Hunt family entities on this project. This association gives the venture's drilling and production efforts real added value. We hope this agreement leads us to future strategic affiliations with this group."
About the Barnett Shale: According to the American Association of Petroleum Geologists, over 1 trillion cubic feet of gas has already been produced by the Dallas Fort Worth area Barnett Shale play. Current well completions average 1.5 wells per day. The Barnett Shale produces more than 50% of all shale gas produced in the United States. Using a geology-based assessment methodology, the U.S. Geological Survey estimated a mean of 26.7 trillion cubic feet (TCF) of undiscovered natural gas, a mean of 98.5 million barrels of undiscovered oil, and a mean of 1.1 billion barrels of undiscovered natural gas liquids in the Bend Arch-Fort Worth Basin Province.
About Lexington Resources, Inc.: Lexington Resources, Inc. is a natural resource exploration company engaged in the acquisition and development of oil and natural gas properties in the United States. Its current operational focus is on gas development initiatives in the Arkoma Basin, Oklahoma and the Dallas Fort Worth Basin in Texas. The Company continues to weight its development initiatives towards gas production. For further information see: www.lexingtonresources.com
SAFE HARBOR STATEMENT
THIS NEWS RELEASE MAY INCLUDE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF SECTION 27A OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE UNITED STATES SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED, WITH RESPECT TO ACHIEVING CORPORATE OBJECTIVES, DEVELOPING ADDITIONAL PROJECT INTERESTS, THE COMPANY'S ANALYSIS OF OPPORTUNITIES IN THE ACQUISITION AND DEVELOPMENT OF VARIOUS PROJECT INTERESTS AND CERTAIN OTHER MATTERS. THESE STATEMENTS ARE MADE UNDER THE "SAFE HARBOR" PROVISIONS OF THE UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND INVOLVE RISKS AND UNCERTAINTIES WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE IN THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN.