Natural Gas Prices Fuel Company’s Move Into Market

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Surging demand for energy in countries like China and India has a local oil and gas company looking to expand in Texas.

Beverly Hills-based Vortex Resources Corp., which last week changed its name from Emvelco Corp., announced Thursday that it had signed an agreement to acquire undeveloped natural gas leases in the Barnett Shale area.

While it has worked in different industries, including real estate development, Vortex has recently entered the energy market. The company hopes to capitalize on soaring energy prices and rising demand from developing countries, especially in Asia.

Thursday’s agreement is the second significant move by Vortex in Texas this year. In May, the company acquired Davy Crockett Gas Co. in Crockett County, Texas, for $225 million. Davy Crockett operates about 180 natural gas wells.

Yossi Attia, Vortex’s chief executive, said in a statement about the recent deal that the land, which totals about 13,000 acres, is capable of supporting 108 wells.

“We are pleased that we will be joining a list of distinguished companies such as Cheasapeake, Devon, EOG, XTO and Quicksilver operating in the Barnett Shale,” he said.

The Barnett Shale stretches across several counties in Northern Texas; it has been well developed for over a decade by other oil and gas companies, a fact that Vortex Chairman Mike M. Mustafoglu indicated played a big role in the company’s decision.

“This acquisition conforms to our philosophy of entering drilling projects where risks have been adequately identified in order to produce stable and attractive risk-adjusted returns for our shareholders,” Mustafoglu said in a statement.

According to the terms of the deal, London, England-based Blackhawk Investments Ltd. will exercise its exclusive option to acquire another company, which holds the mineral lease rights to the land in the Barnett Shale. Blackhawk then will transfer the leases to Vortex.

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