Salt Lake City, UT (PRWEB) October 18, 2006
Granite Energy, Inc. (NASDAQ OTC Pink sheets: GNGI) (the company), today announced its acquisition of The Escavada, an exploration prospect located in San Juan County, New Mexico. The Project currently has under contract 2,300 acres with an additional several hundred acres under negotiations. The Escavada Prospect contains a total area of interest of approximately 5,000 acres, under the geological concept. This high quality exploration Prospect, "Escavada Prospect" originates from a regional seismic play undertaken by a major domestic oil company. Should the test well be successful, the Escavada Prospect could generate as many as fifty (50) additional developmental drilling locations. In addition, Granite will have the first right of refusal on several other prospect leads in the region which have in excess of 2,000 acres for lease and potential development.
ÂAcquiring this prospect that ConocoPhillips, Inc. originally identified in the 1990Âs and subsequently expended significant resources on seismic studies is a tremendous step for Granite Energy. As an independent oil and gas company, we are fortunate, through our industry relationships, we were even given the opportunity to review this program. Once our consulting geologist and reservoir engineers had an opportunity to study the regional analysis, it became our priority to make this transaction happen as quickly as possible.Â Stated S. Matthew Schultz, Granite Energy, Inc.Âs Chief Executive Officer. ÂWe plan to begin the permitting process for our initial well as soon as it is prudent.Â Schultz continued.
The company also announced the relocation of its headquarters to Salt Lake City, Utah.
Granite Energy ("Granite") (NASDAQ OTC symbol: GNGI) is a leading independent energy company headquartered in Salt Lake City, UT and focused on oil and gas development, exploration and production. With oil professionals in offices throughout North America, Granite executes on a proprietary business model that enhances the lifecycle for oil producing properties. Granite Energy has growing oil and gas holdings in Texas, New Mexico and Oklahoma. The combination of Granite's methodologies, geological and technical expertise enables Granite to deliver the tangible economic benefits in the acquisition and development of oil and gas fields with both current production as well as exploration and development of new prospects.
For additional information about Granite Energy, Inc., go to http://www.graniteenergy.com
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "forecasts," "potential," or "continue," or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The company has no obligation to update these forward-looking statements.
Granite Energy, Inc.
S. Matthew Schultz, 801-244-4405
m.schultz @ graniteenergy.com