Deeper Oil & Gas Horizons are Targets of New Well
KELOWNA, British Columbia, May 10, 2011 /PRNewswire/ -- Lexaria Corp. (the "Company" or "Lexaria") is pleased to announce its participation in its first Tuscaloosa well, targeting deeper oil and gas horizons.
For the first time since commencing oil and gas drilling operations in Mississippi in 2005, Lexaria has taken an interest in a well that is targeting the Tuscaloosa "A" sand at a depth of approximately 12,000 feet. This is, to date, the deepest well that Lexaria has been involved in, in Mississippi.
The well location cannot be specifically disclosed due to reasons of confidentiality. Drilling operations have commenced and are underway.
The prospect is up-dip to an earlier well that produced both oil and gas prior to ceasing production due to down-hole complications. The prospect was developed using 3-D seismic technology and extensively re-worked seismic stratigraphy.
There are six Lower Tuscaloosa oil fields in the area that have each produced over 1 million barrels of oil, with the largest, Liberty Field, having produced over 4.7 million barrels. The largest Lower Tuscaloosa gas field in the area was Thanksgiving field, which produced over 30 billion cu.ft. of gas.
Lexaria is participating in this prospect with a 5.75% BCP (Before Casing Point), reverting to a 4.423% ACP (After Casing Point). Lexaria has historically participated with more risk-averse percentage interests early in the development of a new target, and has historically sought to increase those interests over time, if they meet with geologic and production success.
Lexaria has previously advanced sufficient funds to meet its obligations for the drilling of this well. Should the well be successful, Lexaria will advance additional funds sufficient to meet its well completion obligations.
To learn more about Lexaria Corp. visit www.lexariaenergy.com.
ON BEHALF OF THE BOARD
Mr. Chris Bunka, President
FOR FURTHER INFORMATION PLEASE CONTACT:
Chris Bunka President/CEO/Chairman
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements which are not historical facts are forward-looking statements. The Company makes forward-looking public statements concerning its expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, including statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions are forward-looking statements. Such forward-looking statements are estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors but they include and are not limited to the existence of underground deposits of commercial quantities of oil and gas; cessation or delays in exploration because of mechanical, weather, operating, financial or other problems; capital expenditures that are higher than anticipated; or exploration opportunities being fewer than currently anticipated. There can be no assurance that road or site conditions will be favourable for field work; no assurance that well treatments will have any effect on oil or gas production; no assurance that oil field interconnections will have any measurable impact on oil or gas production or on field operations, and no assurance that the expected new well(s) will be drilled or have any impact on the Company. There can be no assurance that expected oil and gas production will actually materialize; and thus no assurance that expected revenue will actually occur. There is no assurance the Company will have sufficient funds to drill additional wells, or to complete acquisitions or other business transactions. Such forward looking statements also include estimated cash flows, revenue and current and/or future rates of production of oil and natural gas, which can and will fluctuate for a variety of reasons; oil and gas reserve quantities produced by third parties; and intentions to participate in future exploration drilling. Adverse weather conditions can delay operations, impact production, and cause reductions in revenue. The Company may not have sufficient expertise to thoroughly exploit its oil and gas properties. The Company may not have sufficient funding to thoroughly explore, drill or develop its properties. Access to capital, or lack thereof, is a major risk. Current oil and gas production rates may not be sustainable and targeted production rates may not occur.. Factors which could cause actual results to differ materially from those estimated by the Company include, but are not limited to, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other factors which may be identified from time to time in the Company's public announcements and filings.
The CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
SOURCE Lexaria Corp.