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MDM Permian, Inc. Completes First Stage of Lindley 6103 Oil Well Rework with Resumption of Oil and Gas Production

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Carrollton, Texas--(Newsfile Corp. - February 4, 2020) - MDM Permian, Inc. (OTC:MDMP) today announced that MDM Energy, Inc. (the wholly owned operating company subsidiary of MDM Permian, Inc.) announced that it has completed the first stage of the re-work on the Lindley 6103 oil well located in Irion County, Texas. Oil and gas production have resumed for this well.

The wells on the Lindley leases were originally drilled and completed in the late 1970's and early 1980's. Technology at the time was not at the point yet to recognize the potential of the Wolfcamp or the Clearfork shales. All the wells were completed in the Canyon Sands section and have been producing from that interval since. It is our intention to give the Canyon Sands one final attempt at economically enhanced production, with minimal expense, by utilizing currently recognized technology.

This first stage of the re-work consisted of the replacement and improvement of the surface equipment. The old leaky equipment was removed and replaced with an additional 210 bbl steel stock tank, a 210 bbl fiberglass water tank, and a 3-phase separator. A berm was built around the facility and paint will be applied within the next week. A new sign has been ordered.

On Wednesday, January 29, the well was gauged with 400 lbs of casing pressure and was allowed to bleed down overnight. The well has been turned back to production for a full test of potential, pumping with 150 lbs of back pressure. It first had to fill the system, flow lines and separator, before oil goes to the stock tank. During the first 24 hrs, the well put 3 bbls into the stock tank, 1 ½ bbls into the separator and about 1 bbl into the flowlines. Over the next few weeks, we expect the well to settle to a stable, most likely low production rate, with a small volume of water.

The second phase of the re-work will begin shortly with the swab testing of 2 separate zones in the Canyon Sands section. Logs will be run to verify the location and number of existing perforations, including a pulsed neutron to identify overlooked oil in the well. We will be perforating the top 10 feet of the oil producing section of the Canyon Sand, using a gas gun to gain deeper penetration (a video of an above ground test of the gas gun has been posted on the OTC Markets website). A mid-sized acid/chemical treatment will be applied and after swabbing, the well will be put back into production with a chemical drip system.

'The best potential for these wells is up-hole, in the Wolfcamp, Clearfork and San Angelo sections.' stated Mr. Rafael, the company CEO, 'We always start at the bottom and work our way up. We will get all 4 wells done in the Canyon Sands, re-evaluate, and then make decisions based on results so far.'

An updated report will be issued when we have completed the 2nd phase of this re-work in the Canyon Sands. Once the initial work is finished on the Lindley 6103 well, we will move our attention to the Lindley 'A' Lease, #A-1, #A-2, and #A-3 wells and replicate and/or modify the procedures used on the #6103 well.

About MDM Permian Inc.:
Based in Addison, Texas, MDM Permian, Inc. is a publicly traded energy company with interests in oil and natural gas wells, minerals and prospects. The Company's business plan includes building value through reserves and production in the Permian Basin of Texas.

Safe Harbor Act: Forward-Looking Statements are included within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, including words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions are forward-looking statements and involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. We are under no obligation to (and expressly disclaim any obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.

For additional information, view the company's website at www.mdmpermian.com or contact: MDM Permian, Inc. at: (214) 651-9900

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/52070

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