Dallas, TX (PRWEB) October 30, 2013
Petron Energy II, Inc. (“Petron II” or the “Company”) (OTCBB: PEII) Petron Energy II, Inc., signs Letter of Intent to purchase minority interest from Phoenix Energy, Inc. in Bakken Shale Deal.
Petron Energy II, Inc., together with its subsidiaries, engages in the acquisition and development of properties for the production of crude oil and natural gas, the transportation of natural gas through its pipeline subsidiary and well servicing through its servicing subsidiary. The Company’s operations are based in the United States.
Floyd Smith, President and CEO of Petron Energy II, Inc., states, "The Bakken play in North Dakota is one of the hottest oil plays in the energy space. We have monitored this particular minority interest owned by Phoenix Energy, Inc. for the past few months as a possible addition to the non-op section of our portfolio. We feel the timing is right to proceed in acquiring a 5% minority position in 6 wells in the Bakken Shale. Additionally, the company can increase its non-op position by purchasing additional interest from current Phoenix Energy, Inc. holdings in the Bakken play."
Smith goes on to say, “Reserve estimates project each of the 6 wells to have oil reserves of 600,000 barrels recoverable from the Bakken and 800,000 barrels recoverable from the Red River and Interlake formations." Smith further states, “The conservative reserve value of the 5% to Petron II is projected to be $10.5 million dollars. We have begun our due diligence and expect to complete the process by mid November."
The company also successfully performed fracture stimulation treatments on the Covenant #5 and the Gerner #2 wells in the Dutcher sandstone on October 29, 2013. The company will report updated production news for both wells as soon as results are available.
About Petron Energy II, Inc.:
Petron Energy II, Inc. is a Dallas-based, oil and gas exploration and production company. For further information about the Company, please visit our website http://www.petronenergyii.com.
About Phoenix Energy, Inc.:
Phoenix Energy, Inc. is a private Natchez, Mississippi based, oil and gas exploration, production and land management company with an emphasis primarily in onshore United States.
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