Worthington Energy Intends to Capitalize on Offset Drilling Opportunities
May 08 2014 - 11:40AM
Marketwired
Worthington Energy Intends to Capitalize on Offset Drilling
Opportunities
Offset Drilling Programs Require Virtually No Finding Cost
SAN FRANCISCO, CA--(Marketwired - May 8, 2014) -
Worthington Energy, Inc. (OTCQB: WGAS) ("Worthington" or the
"Company"), an energy company engaged in the acquisition,
exploration, development and drilling of oil and natural gas
properties, takes this opportunity to discuss the Offset Well
drilling opportunities that the Company intends to utilize as it
prepares to begin oil recovery operations in Southeast Kansas.
"Energy technology is only one of the many benefits that the ADR
asset purchase brings to Worthington," stated Worthington Energy
President and COO, Mr. Charlie Adams. "Another benefit is a sizable
land base. When you capture the land, you capture the value.
Worthington can now grow organically by adding projects from its
existing land base at a very low cost. Offset well drilling is an
excellent example of the potential opportunities for substantial,
low cost growth."
An Offset Well is a well drilled on property in geographic
proximity to an existing, producing wellbore. Within the Oil &
Gas industry these wells are categorized as Proved Undeveloped
wells (PUDs).The existing wellbore provides information (offset
data) used in planning and developing the offset well. This data
minimizes the capital cost of locating an optimal drilling site.
Without this data, well planning is an expensive and risky
undertaking.
"Recovering oil reserves is always a function of price and
technology," continued Mr. Adams. "Traditionally, finding oil has
been the most risky part of the business. The costs of exploring
for and developing oil and gas reserves and the costs to purchase
properties or acquire leases that might contain oil and gas
reserves are significant. Conversely, offset drilling has virtually
no finding cost which makes this one of the safest, most low risk
investments in the energy industry today."
"Offset completions are yielding a reserve value five times the
cost of drilling a traditional well and new offset wells can be
drilled, completed and producing in a matter of days. Worthington
fully intends to capitalize on the competitive and economic
advantages provided by offset drilling. The Company is positioned
to have long-term, steady production growth guided by an excellent
management team and I am excited about the opportunities ahead of
us," concluded Mr. Adams.
About Worthington Worthington engages in the acquisition,
exploration, development and drilling of oil and natural gas
properties. Worthington is an energy turnaround company whose
strategy is to acquire cash flow producing properties with proved
and probable reserves, develop the fields by reworking existing
wells and drilling new wells. Worthington was founded in 2004 and
is based in San Francisco, CA.
Safe Harbor Certain statements in this press release regarding
strategic plans, expectations and objectives for future operations
or results are "forward-looking statements" as defined by the
Securities Litigation Reform Act of 1995. All statements, other
than statements of historical facts, included in this press release
that address activities, events or developments that the Company
expects, believes or anticipates will or may occur in the future
are forward-looking statements. These forward-looking statements
are not guarantees of future performance and are subject to risks
and uncertainties that could cause actual results to differ
materially from the results contemplated by the forward-looking
statements, including the risks discussed in the Company's annual
report on Form 10-K and the Company's other filings with the
Securities and Exchange Commission. Factors that could cause
differences include, but are not limited to, history of losses;
speculative nature of oil and natural gas exploration, substantial
capital requirements and ability to access additional capital;
ability to meet the drilling schedule; changes in tax regulations
applicable to the oil and natural gas industry; results of
acquisitions; relationships with partners and service providers;
ability to acquire additional leasehold interests or other oil and
natural gas properties; defects in title to the Company's oil and
natural gas interests; ability to manage growth in the Company's
business; ability to control properties that the Company does not
operate; lack of diversification; competition in the oil and
natural gas industry; global financial conditions; oil and natural
gas realized prices; ability to market and distribute oil and
natural gas produced; seasonal weather conditions; government
regulation of the oil and natural gas industry, including potential
regulations affecting hydraulic fracturing and environmental
regulations such as climate change regulations; uninsured or
underinsured risks; and material weakness in internal accounting
controls. The forward-looking statements in this press release are
made as of the date of this press release, even if subsequently
made available by the Company on its website or otherwise. The
Company does not undertake any obligation to update the
forward-looking statements as a result of new information, future
events or otherwise.
Contact Surety Financial Group, LLC 410-833-0078