It’s only been a little over 90 days since we closed on the Goshen property
(PRWEB) May 8, 2007
City Capital Corporation’s (OTCBB: CCCN) wholly owned subsidiary, Goshen Energy Resources, has initiated production with the first of four wells in the West Delta 25 gas producing offshore platform. Well Number One is currently averaging 400 thousand cubic feet (mcf) per day, running at approximately 20% capacity while all systems are being brought on line. The West Delta platform is located in the Gulf of Mexico, and has three additional existing wells which the company is also preparing to bring online.
Goshen president Harvey E. Lynch, Sr. explained, “Like many offshore platforms, West Delta was damaged by Katrina in 2004. The previous owners chose not to repair the older inefficient pump which had been in place since the well was first established, but chose instead to shut down the rig. City Capital’s first decision was to replace the older compressor with a newer, more efficient one. This was a larger initial capital outlay, but it succeeded in making the entire operation significantly more cost-effective.”
William Clay Kimbrell, P.E., C.P.G. of Kimbrell and Associates of Baton Rouge, certified the West Delta reserves at $38 million based on conservative pricing of only $5.00 per mcf for natural gas. Kimbrell is a registered professional engineer with Kimbrell and Associates, certified members of the American Institute of Professional Geologists and one of the most experienced Oil and Gas Engineering firms in Louisiana. The conservative estimate is well below recent spot market pricing for natural gas of $7.64/mcf. Upcoming winter season pricing is projected even higher, at over $9.00/mcf, or almost double the “rule of thumb” rate used in the evaluation. (source: http://www.eia.doe.gov)
“It’s only been a little over 90 days since we closed on the Goshen property,” added City Capital CEO Ephren W. Taylor II. “With approximately 8 Billion cubic feet of certified gas reserves, we figured spending around $250,000.00 to rework the well was a prudent decision. We feel the energy market will continue its general upward trend, as world market conditions are more and more affected by political instability in key production countries.”
Goshen’s West Delta property includes 3,900 additional acres in which the company can perform additional drilling and exploration. The company has identified several key areas to enhance production and maximize profits, including the acquisition of a producing oil well with estimated crude oil reserves of 600,000 barrels, which the company closed on in April 2007. Goshen Energy Resources is engaged in the buying, selling & drilling of oil & gas properties in South Louisiana.
About City Capital
City Capital Corporation (OTCBB: CCCN) is engaged in leveraging investments, holdings and other assets to create self-sufficiency for communities around the country and the world. City Capital currently manages diverse assets and holdings ranging from large scale real estate developments, such as the Kansas City (Missouri) Historic Jazz District, to approximately 8 billion cubic feet of producing West Delta gas reserves and more. The company recently signed a $50,000,000 Credit Facility Agreement with Rochester-based Lucian Group, allowing the company to focus on additional growth industry acquisitions for the company. City Capital, founded in 1984, recently announced a dividend for the first quarter of 2007, the first in its history.
This release contains "forward-looking statements" based on current expectations but involving known and unknown risks and uncertainties, including those described in the Company's annual report on Form 10-K for the year ended December 31, 2006, that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, whether as a result of new information, future events or otherwise. The Company's plans and objectives are based on assumptions involving judgments with respect to future economic, competitive and market conditions, its ability to consummate, and the timing of, acquisitions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company's control. Therefore, there can be no assurance that any forward-looking statement will prove to be accurate. The Company makes no undertaking to update such forward-looking statements.
City Capital Corporation
IR @ citycapcorp.com