Petro Resources Provides Operations Update
April 30 2008 - 9:49AM
Marketwired
HOUSTON, TX ("the Company") provides an update on the results
from operations for year-to-date 2008.
Cinco Terry Project
In the Cinco Terry Field, located in Crockett County Texas, the
Company in association with the operator, Approach Resources Inc.
(NASDAQ: AREX) ("Approach"), has been successful in efforts to
acquire additional acreage adjacent to the existing acreage
position. A total of 9,482 gross acres of leasehold interest was
acquired in two transactions. Approach, as operator for the Company
and the other working interest owners in the project, participated
in The University of Texas System's 113th Lease Sale. In a
sealed-bid auction, Approach purchased approximately 7,843 gross
acres for a total cash consideration of $1,900,000. Approach also
acquired another 1,639 gross acres from third party operator for
cash consideration of $216,000. The Company believes the acreage is
prospective for Ellenberger and Canyon Sands production. The
additional acreage expands the Cinco Terry Field acreage to a total
of approximately 31,382 gross acres. The Company has approximately
a 10% working interest in the Cinco Terry Field.
Year-to-date, 21 wells have been drilled and completed in Cinco
Terry Field, 13 Ellenberger wells and 8 Canyon wells. As of
December 31, 2007, the Company reported estimated proved reserves
of approximately 600 Mboe (thousand barrels of oil equivalent) from
the Cinco Terry Field. The field is currently being developed on 80
acre spacing with two rigs currently running on a full time basis.
The operator has identified 119 additional drilling locations on
currently held joint venture acreage.
Williston Basin
Subject to rig availability, the Company expects to spud its
first deep test of the Newporte exploration prospect in early May.
The Company conducted a 3-D seismic survey of the entire 4,400 acre
prospect in the fourth quarter of 2007 and spent the first quarter
of 2008 analyzing the data and selecting well locations.
The primary target for this well is the Deadwood Sandstone
formation at approximately 9,500 feet. The well will penetrate
several formations that are productive in other parts of North
Dakota including the Bakken and Red River. The Company plans to
take core samples from these formations for analysis. The Company
expects that drilling and testing operations will be completed
within 60 days from spud date.
Also within the next 120 days the Company plans to drill one new
developmental horizontal well in the East Flaxton Madison Unit to
capture additional primary production. The Company will also drill
two new developmental horizontal wells in the re-pressurized Mohall
Madison Unit. The Mohall Madison Unit will be the second unit in
the Company's water flood re-pressurization program to have new
horizontal production wells drilled.
In the Kolbo prospect, the Company has successfully drilled and
completed the Overton 10-20 well. This well was drilled up-dip from
a well drilled last year that produced for a short period of time.
The well is currently producing about 25 barrels of oil per day
along with approximately 200 barrels of water. The Company is
currently evaluating the optimization of production from this
well.
As of December 31, 2007, the Company reported estimated proved
reserves of 2,300,000 boe (barrels of oil equivalent) from the
Williston Basin.
East Chalkley Project
The Company recently reached an agreement to acquire a 34.375%
working interest in the East Chalkley Project located in Cameron
Parish Louisiana. East Chalkley is an oil field appraisal and
development project. The project operated by Centurion Exploration
Company, a privately owned company, headquartered in Houston,
Texas.
The oil accumulation on the east flank of the Chalkley Field is
a previously unidentified down-dip oil leg associated with a gas
field. The producing fault block has been mapped using 3-D seismic
as a three-way closure and has been confirmed by an existing well
which is currently producing.
The initial well is scheduled to commence drilling in May and
will offset the existing producing well.
Management Comments
Mr. Donald Kirkendall, President of Petro Resources said: "This
has already been a very busy year for Petro Resources and the next
90 days look even busier as we get into the meat of our 2008
drilling program. We are excited about operations in North Dakota
with both the Newporte exploration project and the continued
progress in our water flood re-pressurization program. We expect to
realize increases in production from both East Flaxton and Mohall."
Mr. Kirkendall went on to say: "The additional acreage in the Cinco
Terry Field is very important as the field has become a significant
contributor to our growth since development began in 2007."
About Petro Resources
Petro Resources Corporation is an independent exploration and
production company engaged in the acquisition of properties and
leases, exploration, development, exploitation, and production of
oil and natural gas in the continental United States.
Forward-looking Statements
The statements contained in this press release that are not
historical are "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended (the
"Securities Act"), and Section 21E of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"), including statements,
without limitation, regarding the Company's expectations, beliefs,
intentions or strategies regarding the future. Such forward-looking
statements relate to, among other things: (1) the Company's
proposed exploration and drilling operations on its various
properties, (2) the expected production and revenue from its
various properties, and (3) estimates regarding the reserve
potential of its various properties. These statements are qualified
by important factors that could cause the Company's actual results
to differ materially from those reflected by the forward-looking
statements. Such factors include but are not limited to: (1) the
Company's ability to finance the continued exploration and drilling
operations on its various properties, (2) positive confirmation of
the reserves, production and operating expenses associated with its
various properties; and (3) the general risks associated with oil
and gas exploration and development, including those risks and
factors described from time to time in the Company's reports and
registration statements filed with the Securities and Exchange
Commission, including but not limited to the Company's Annual
Report on Form 10-K for the year ended December 31, 2007 filed with
the SEC on March 31, 2008. The Company cautions readers not to
place undue reliance on any forward-looking statements. The Company
does not undertake, and specifically disclaims any obligation, to
update or revise such statements to reflect new circumstances or
unanticipated events as they occur.
Contact: Brad Holmes Investor Relations (713) 654-4009 or Don
Kirkendall President (832) 369-6986
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