Petro Resources Provides Operational Update
June 18 2008 - 9:30AM
Marketwired
HOUSTON, TX ("the Company") provides an update on operations in
North Dakota and Louisiana.
North Dakota
The Company has completed the drilling phase of its first
horizontal well in the East Flaxton Madison Unit. The EFMU#23H well
was drilled to a total vertical depth of 5,780' and a total
measured depth of 10,310' including approximately 4,000' horizontal
lateral drilled through the Nesson formation. The horizontal
portion of the lateral had mud log shows through most of its length
as was anticipated. A completion rig will be moved on location to
commence swabbing and completion operations shortly. The Company
anticipates that the well turned to sales by mid-July. This is the
first enhanced recovery well drilled in the East Flaxton Madison
Unit which is the second of the Company's oil fields in North
Dakota to become substantially fully re-pressurized by water
injection.
The Company anticipates drilling similar horizontal wells in the
Mohall Madison Unit later this year. Mohall has also been
successfully re-pressurized and will be the Company's third such
field to reach this stage in secondary recovery operations.
The Company anticipates that drilling operations will commence
within the next week on the Emmel 10-3 well which will be the first
deep test drilled on the Newporte prospect. The well site location
has been built and rig loads are now arriving. Drilling operations
on the Newporte prospect have been delayed due to a rig move from
Canada and extremely wet weather conditions. Once drilling
operations have begun the Company expects it will take 30-40 days
to reach total depth. The main object for the well is the Deadwood
Sandstone at approximately 10,000' and the well will also test
other multiple horizons including the Red River and Bakken
formations.
Louisiana
The Pine Pasture #2 well in the East Chalkley field in Cameron
Parish Louisiana was spudded on June 12, 2008 and drilling
operations are ongoing. The well is operated by Centurion
Exploration of Houston, Texas. The Company expects that the well
will reach total depth of 9,600 feet by the end of June. If the
well is commercially successful, production will commence through
existing production facilities minimizing the time to turn the well
to sales.
New Hedges
During the second quarter of 2008, the Company purchased crude
oil put options for 100 barrels per day in 2009 at a strike price
of $110 per barrel.
Management Comments
Mr. Don Kirkendall, President of Petro Resources, said: "We are
very pleased with our current level of activity and results from
the EFMU#23H well. We also remain very enthusiastic about the deep
Newporte prospect even though we are experiencing weather related
delays in getting the rig to location." Mr. Kirkendall went on to
say: "The East Chalkley development prospect looks very good to us
and may be the first of several wells in the field if the results
of the first well are as we expect."
About Petro Resources
Petro Resources Corporation is an independent exploration and
production company engaged in acquisitions of exploratory leases,
acquisitions of producing properties, secondary enhanced oil
recovery projects, exploratory drilling, and production of oil and
natural gas in the United States. For more information, please view
our website at www.petroresourcescorp.com.
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 and Form
10-Q for the quarter ended 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 Don
Kirkendall President (832) 369-6986
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