BEDFORD, Texas, October 23, 2013 /PRNewswire/ --
PetroTech Oil and Gas, Inc. (OTC: PTOG) announces the acquisition of an 80-acre lease in Nowata, Oklahoma along with their partner CAVU Resources Inc. The lease known as the Brown lease has 12 existing oil and gas wells and one disposal well that PetroTech and Cavu Resources, has begun reworking. The project is an expected $400,000 investment with over $175,000 committed to date, with an expected first five wells online within 30 days, and the balance of the seven wells online by mid December, and a plan to have all wells producing anywhere from 270 barrels per month to 600 barrels per month, with revenue of $27,000.00 to $60,000.00 per month. Added to four gas wells, which will bring in an additional $4,000.00 a month.
About the Nowata Oklahoma Lease:
Located in Nowata County, Oklahoma, this project is situated on the Northeastern edge of the Northeast Oklahoma Shelf, which has proven to be prolific in coal bed methane gas since it was developed beginning in the early 1990s. PETROTECH OIL AND GAS properties are surrounded by leases operated by some of the major players in the field such as Newfield Exploration, Mid-Continent, Inc. (NFX), Energy Quest Resources and Endeavor Energy. This area of northeastern Oklahoma has an extensive drilling history extending back to the early 1900s.
The key to success in this area of Oklahoma is optimizing production from the many hydrocarbon-bearing zones, which includes the coal seams. With most wells encountering about a dozen zones that have known production in this area, the drilling risk is extremely low. Having this serendipity also extends the production life of wells from 10-12 years to 15-20 years.
"We are excited having acquired this initial 80 acre project with another 480 acres targeted on the area. We expect immediate results on the reworked wells. We also plan to test an opportunity in the Mississippi and Woodford zones. These well could initial flow 50 to 60 barrels a day with at least 6 drilling locations spotted on our lease. We estimate the minimum oil produced from existing wells to be 20 barrels a day with another 300mcf of gas a day. We continue to look for undervalued opportunities to increase PETROTECH OIL AND GAS assets and income base," stated Eddie Schilb, President
PetroTech Oil and Gas, Inc. uses multiple patent technologies for Enhanced Oil Recovery and in some cases will use their new pumping system co developed by PetroTech. We will use this patented technology with other proven technologies currently used in the industry to drill, complete equip new drill wells and older wells with secondary production opportunities. Throughout the United States there are primary depleted oil reservoirs representing billions of barrels of oil that lend themselves to the use and exploitation of Enhanced Oil Recovery and PetroTech Oil and Gas, Inc.'s proven patented technology. Without EOR technology, these reservoirs will produce only about 20% of their Original Oil in Place. Gas injection EOR is a proven method that has been in use over the last 50 years in the oil fields of West Texas, Kansas, Oklahoma, Michigan, Wyoming and Oklahoma. Starting in the late 1990s we started researching various EOR methods and sources of gases and mixtures of gases to find an alternative gas to pure CO2 for EOR. In doing so, we found that a N2-CO2 mixture was 2-3 times more efficient than CO2 in the recovery of stranded oil. Recently we have been introduced to a patented exhaust unit that was more efficient than regular CO2. A new prototype of that equipment was then built for injection purposes; and is in the process of being further developed for commercial use.
We have analyzed the different types of oil producing reservoirs in most of the major geological basins in the United States and have determined that the use of our process and method will enhance the recovery of stranded oil reserves in these areas that otherwise may never be produced. The pinnacle reefs, other reefs in Texas, make excellent reservoirs for EOR because they are compact, have consistent reservoir properties, thick pay columns, and are overlain by an impermeable cap seal. However, other formations have responded favorably as well. These reservoirs represent over 300 million barrels of recoverable stranded oil using our patented method and technology. CO2 floods have been successful on the reefs in the US with rates as high as 1,000 BOPD. Our process will have a major impact on the recovery of stranded oil in U.S. basins. This statement is based on the fact that we have an unlimited source of gas and we do not need an expensive infrastructure to transport the gas, plus the fact that it is proven that a mixture of CO2 and N2 is more efficient than CO2 in some trials.
The cost and recovery of a project will be dependent on size of structure and depth; the cost will range depending on type of formation and type of treatment design. Hopefully, per project we will capture an additional 20% to 40% of oil in place. Attempting to do this in a period of five years as opposed to the original 20% of oil that has already been produced; which may have taken 10 to 20 years. Each successful project is estimated to have a six- to 12-month payout.
For more information please go to our websites, which can be found at: http://petrotechog.com
Certain information discussed in this press release may constitute forward-looking statements within the Private Securities Litigation Reform Act of 1995 and the federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, it can give no assurance that its expectations will be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements are inherently subject to unpredictable and unanticipated risks, trends and uncertainties such as the Company's inability to accurately forecast its operating results; the Company's potential inability to achieve profitability or generate positive cash flow; the availability of financing; and other risks associated with the Company's business. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
E Relations Group
SOURCE PetroTech Oil and Gas, Inc.