BEDFORD, Texas, June 13, 2013 /PRNewswire/ -- PetroTech Oil and Gas, Inc. (OTC Pink: PTOG), announced today that PetroTech Oil and Gas Inc. and Pangean Energy LLC through a joint Venture have entered into a contract to purchase mineral interests in Leases in North Dakota, Bakken Shale Formations the leases consist of 16,000 acres under lease, with an additional 14,000 acres under option.
"The acquisition price is $28,800,000.00 to be paid through a combination of cash, stock and interest in the development of the wells; (which have no depth restrictions and include several other potential zones). The transaction is subject to final due diligence by the purchaser and legal title opinions," said Eddie Schilb, president of PetroTech (PTOG).
"The engineering report performed by Pinnacle Energy Services LLC, as of June of 2012 reported that information was tight from the State of North Dakota but it had been reported that IP rates in the Bakken were between 2000 Barrels of Oil Per Day and 3500 Barrels of Oil Per Day with Probable and Possible Reserves for the property of 116,242,000 Barrels of Oil.
"The New York Times has featured the Bakken in North Dakota as the luckiest place on Earth and American Association of Petroleum Geologist have reported that the Bakken Formation has the largest reserves in the world, larger than the Saudi Arabia Field. It has been quoted as the largest field discovery in world history," he went on to add.
About Pangean Energy LLC:
Pangean Energy offers oil and gas investment opportunities through direct oil and gas participation programs, which enable investors to participate in the potential cash flow and unique tax benefits associated with oil and gas investments. Especially important in today's troubled economy, oil and gas investments allow investors to diversify and reinforce their investment portfolios with a commodity that is in steady demand. In addition, oil and gas investors have the unique opportunity to play a key role in promoting our country's energy independence through domestic oil and gas drilling programs that help alleviate our nation's dependence on foreign oil.
About Pinnacle energy services LLC
Pinnacle Energy Services was founded in November 1998 as an experienced provider of petroleum reservoir engineering consulting services. They are a group of professionals with diverse backgrounds in the petroleum industry. Pinnacle Energy Services, LLC is a registered professional engineering company in Oklahoma and Texas.
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 1990's 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 enhanced 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 1000 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 5 years as opposed to the original 20% of oil that has already been produced; which may have taken ten to twenty years. Each successful project is estimated to have a six to twelve 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.
SOURCE PetroTech Oil and Gas, Inc.