"We are extremely excited to begin treating what were once huge producing wells in the same field that we have already had tremendous success,” said Mr. John Huemoeller, Novas and Propell President.
Houston, TX (PRWEB) August 19, 2013
Propell Technologies (OTCQB:PROP) is pleased to announce that its wholly owned subsidiary, Novas Energy USA (“Novas”), has signed its first Oil Services Revenue Sharing Agreement to treat up to 10 wells in Oklahoma. The agreement provides that for a twelve month period Novas will receive 49% of the increased production revenue after treatment of the wells with Novas’ technology.
The wells that Novas intends to begin treating with its licensed proprietary and patented plasma pulse technology are located in the same Cottonwood Field in Creek County, Oklahoma adjacent to 2 wells that were successfully treated in March and April 2013. As of July 17, the first well (Cottonwood 9-11) treated in March has shown a 250% increase in production going from 1.4 BOPD to 5 BOPD. As of July 17, the second well, (Cottonwood 9-10) treated in April has shown an increase in production of 210% going from 1.5 BOPD to 4.7 BOPD
The 10 wells Novas plans to treat are in the same Red Fork Sandstone formation on the Cottonwood Lease. The wells have been shut in for a number of years and are among what were the biggest producers in the field when they initially produced. The first 5 wells anticipated to be treated with the plasma pulse technology will be the Cottonwood #11-1 that initially produced (I.P.) at 2400 barrels of oil per day (BOPD), Cottonwood #11-2 with an I.P. of 1166 BOPD, Cottonwood #11-4 with an I.P. of 1440 BOPD, Cottonwood #11-5 with an I.P. of 1472 BOPD and Cottonwood #9-8 with I.P. of 768 BOPD.
"We are extremely excited to begin treating what were once huge producing wells in the same field that we have already had tremendous success,” said Mr. John Huemoeller, Novas and Propell President. “If our treatment continues its success as anticipated we should have recurring revenue. Additionally, there are 60 other wells on the Cottonwood lease that we could treat and thousands of other wells in the same Red Fork formation in Oklahoma."
Novas Energy USA is a wholly owned subsidiary of Propell Technologies. Novas Energy USA develops and implements next generation enhanced oil recovery tools and processes in the U.S. oil services industry that has been shown to significantly improve existing well recovery and production volumes. For more information, visit http://www.novasenergyusa.com or call 713-227-0480, Novas Energy USA, 1701 Commerce Street, Houston, Texas 77002.
SAFE HARBOR STATEMENT This news release contains forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are often identified by the words “believe,” “anticipate,” “expect,” “intend,” “estimate,” and similar expressions. All statements in this document regarding the future outlook related to Novas Energy USA and Propell are forward-looking statements, including but not limited to the initial results and anticipated results from the treated wells and wells to be treated and. Such statements are based on the current expectations, beliefs, estimates and projections of management and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements including the risk that the results of the new wells that are treated will not be as favorable as the initial results. Additional uncertainties and risks are described in our most recently filed SEC documents, such as our most recent annual report on Form 10-K and quarterly report on Form 10-Q. For a more detailed discussion of factors that affect Propell’s operations, please refer to the Company’s Securities and Exchange Commission filings. Copies of this filing are available through the SEC website at http://www.sec.gov. All forward-looking statements are based upon information available to us on the date hereof. Propell undertakes no obligation to update this forward-looking information.