Las Vegas, NV (PRWEB) December 15, 2004
Petrol Oil and Gas Inc. (OTCBB: POIG) announced today that it has filed fifteen new drilling permits and commenced related activities in preparation to begin a drilling program in the first quarter of 2005 on its recently acquired Petrol-Neodesha Project. Based upon current gas prices and production levels the property is anticipated to generate gross revenues of approximately $9.6 million for Petrol in 2005, which would equate to $0.15 per share operating cash flow solely from this property. Petrol has a 100% working interest in the property.
Petrol-Neodesha is in a mature and highly prolific Coal Bed Methane (CBM) gas producing area located in Wilson and Neosho counties, Kansas and currently produces about 3,000 Mcf per day of gas, based upon production from the 71 wells. Petrol acquired the property last month and plans to expand low-risk drilling activities next year to expand production in the area. Petrol-Neodesha has room for an additional 100 drillable locations.
"We are working diligently to expand production in this highly promising area," said Paul Branagan, Petrol's President and Chief Executive Officer. "Since completing the acquisition, further due diligence has indicated that the property supports a large-scale drilling program. We have begun to mobilize equipment and resources so that we can expand production beyond what currently exists today."
Forward-Looking Statement: The statements in this press release regarding any implied or perceived benefits from the acquisition of the Petrol-Neodesha Project, plans to drill additional CBM gas wells, anticipated revenues, share cash flow, the acquisition of additional oil or gas leases, maintaining mineral lease rights, and any other effects resulting from any of the above are forward-looking statements. Such statements involve risks and uncertainties, including, but not limited to, the continued production of gas at historical rates, costs of operations, delays, and any other difficulties related to producing minerals such as oil or gas, continued maintenance of the oil field and properties, price of oil or gas, marketing and sales of produced minerals, risks and effects of legal and administrative proceedings and governmental regulation, future financial and operational results, competition, general economic conditions, and the ability to manage and continue growth.
Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include market conditions and those set forth in reports or documents we file from time to time with the SEC. We undertake no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Source: Petrol Oil and Gas Inc.
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