South Plains Petroleum, Inc. and Metawells Oil and Gas, Inc. Merge for NASDAQ Uplisting

South Plains Petroleum, Inc. (OTC: SPPP) and Metawells Oil and Gas, Inc. (OTC PINK: KOSK) have announced a merger agreement, with South Plains' shareholders approving the deal unanimously. The merger involves a 1.5:1 share exchange ratio and plans to uplist to NASDAQ with a minimum $4.00 share price requirement. This strategic move aims to create a more robust and diversified oil and gas company, enhancing shareholder value and market appeal.

South Plains Petroleum brings significant assets to the table, including:

1. Eastern Permian Basin properties with 2.25-2.5 million barrels of recoverable oil (PV10: $27 million)
2. Welch lease with 800,000 estimated recoverable barrels (PV10: $20 million)
3. Southern Abilene field with 400,000 recoverable barrels (PV10: $10 million)
4. Louisiana properties with 18+ BCF of natural gas and 1.8 million barrels of oil (PV10: $35+ million)

The combined properties have a conservative minimum value of $92 million, providing a solid foundation for the merged entity's growth and value creation. South Plains' bylaws include a dividend provision of 5% when oil exceeds $60 and gas exceeds $3, offering potential shareholder distributions.

Metawells Oil and Gas, Inc. is a development-stage company focused on acquiring and developing domestic US oil and gas resources. The merger with South Plains Petroleum will accomplish this goal, providing Metawells with a strong portfolio of oil and gas assets and a path to public markets.

The combined company's asset portfolio, with its significant oil and gas reserves, provides a strong platform for growth and value creation. The diverse geographical locations and production mixes of these assets also contribute to the merged entity's resilience and potential for long-term success.

The expected timeline for the uplisting to NASDAQ and the name change to South Plains Petroleum is not explicitly stated in the provided materials. However, the process of merging, reorganizing, and uplisting to NASDAQ can take several months to a year, depending on various factors such as regulatory approvals, financial audits, and market conditions. Investors should monitor the company's progress and announcements for updates on the expected timeline.



In conclusion, the merger between South Plains Petroleum, Inc. and Metawells Oil and Gas, Inc. presents an exciting opportunity for both companies to create a more robust and diversified oil and gas entity. With a strong asset portfolio, experienced management, and a path to public markets, the combined company is well-positioned for growth and value creation. Investors should closely monitor the progress of this merger and the uplisting to NASDAQ for potential investment opportunities.