"Based on these results, we expect to now have recurring revenue from oil sales, which is monumental to our business plan,” said Mr. John Huemoeller II, Propell’s President and CEO.
Houston, TX (PRWEB) October 01, 2013
Propell Technologies Group, Inc (OTCQB: PROP) is pleased to report initial results from a well treated in the Tulsa, Oklahoma area. This is the first well treated under Propell’s recently executed Oil Services Revenue Sharing Agreement (OSRSA) with a privately held oil company. Propell’s OSRSA allows it to share in 49% of the increased oil production revenues from the 10 wells that it intends to treat.
Cottonwood Well # 13-6 is located in Creek County, Oklahoma on the Cottonwood field and was drilled in 1956; it had initial production of 10 BOPD on a 16/64 choke. For the last several years the well had been producing one (1) BOPD until Cottonwood # 9-10 and 9-11 located approximately a half a mile away from it were treated by Propell in April of 2013 in connection with Propell’s pilot program. Soon after those treatments, Cottonwood # 13-6 experienced a production increase to 5 BOPD where it has held steady since.
On September 27th, 2013 Propell’s team returned to the Cottonwood field and treated Cottonwood # 13-6. The well was brought back on-line shortly after Propell’s treatment and has experienced a significant increase in production. Cottonwood # 13-6 has gone from producing 5 BOPD to 57 BOPD.
Propell, working with the field operator, came up with a treatment plan that entailed perforating 10 feet in the Red Fork sandstone formation and then treating the well with its proprietary plasma pulse technology instead of fracking.
The 9 other wells Propell has an agreement to treat are in the same Red Fork Sandstone formation on the Cottonwood Lease. Some of 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. Additionally, there are 60 other wells on the Cottonwood lease that are believed to be treatable and thousands of other wells in the same Red Fork formation in Oklahoma.
The field’s operator, Tim Peara, commented enthusiastically about the success of the plasma pulse technology on his oilfield. "Normally we would have fracked the new perforation zone but since we’ve seen such incredible results already from Propell’s technology we wanted to use only the plasma treatment and see what happened. I must say, this technology works great! “
"We changed up the batting order in the Cottonwood field a little while we were waiting for some of the bigger shut-in initial producers to get ready for us, and we couldn’t be any happier we did. Based on these results, we expect to now have recurring revenue from oil sales, which is monumental to our business plan,” said Mr. John Huemoeller II, Propell’s President and CEO.
About Propell Technologies, OTC Markets: PROP. – through its wholly owned subsidiary Novas Energy USA, Propell is the exclusive licensee of patented “Plasma Pulse” technology in the United States, which has been shown to significantly improve existing well recovery and production volumes. For more information, visit http://www.propell.com or call 713-227-0480, 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 from the treated wells and the timing and release of future data. 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 future data will not be as favorable as the initial results, the number of wells for which Propell’s technology can be applied and its ability to generate revenue . 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