Oil well drilling success for NYTEX in north Texas

Source: NYTEX Energy Holdings, Inc.

NYTEX Energy Holdings, Inc. ("NYTEX", or the “Company”) (OTCBB: NYTE), a Dallas-based energy holding company operating through its subsidiary, NYTEX Petroleum, Inc. announced the successful drilling and completion of its first vertical well drilled into the Marble Falls formation at 5,500 feet in depth located in Jack County, Texas. The well came in free-flowing at an initial production rate of 75 barrels of oil per day and 1.8 million cubic feet of high BTU gas per day. High BTU gas currently sells for over $4.50 per MCF. This well is the first of five wells that NYTEX recently drilled into the Marble Falls and Barnett Shale that are awaiting completion, with a sixth well currently drilling as of the date of this release. Co-funded with industry partners, NYTEX owns between 10% and 20% through a combination of working interests and overriding royalty and back-in working interests in the six wells. NYTEX currently holds leasehold ownership in 1,205 acres on which there are 30 additional drilling locations, with commitments from mineral owners to acquire an additional 2,500 acres. The Company maintains an ongoing leasehold acquisition initiative in the Marble Falls play.

As a result of providing land/lease bank services, NYTEX owns overriding royalty interests in 65,489 acres in Jack, Throckmorton and Young Counties in the Marble Falls, Mississippi Lime and Caddo Limestone resource plays. Also, as a result of the Company generating and selling drilling prospects, NYTEX owns overriding royalty and/or carried working interests in 22,904 acres in Jack, Young, Palo Pinto and Stephens Counties.

Michael Galvis, NYTEX President and CEO, commented, "The sale of our Francis Drilling Fluids, Ltd. operations this past May has allowed us to not only simplify our balance sheet, fully redeem all debentures and markedly reduce operating costs and liabilities, but also turn our focus to the burgeoning opportunities created by our early success in our target multi-pay oil resource plays."

Mr. Galvis added, “By completing our first six wells, we expect to enjoy substantial increases in cash flows from oil and gas production adding to our land services revenues, as well as build producing oil and gas reserves and create shareholder value."


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