VENTURA, Calif., Aug. 12, 2013 /PRNewswire/ -- NAMG has reached agreement to acquire an additional 18.75% working interest and operatorship in the Tejon Ranch Main Footwall Project ("Tejon Main"). The Company is acquiring the additional interest for cash consideration of $140,000 from existing joint venture partner Solimar Energy LLC. NAMG's interest in the project will go to 40%.
Bob Rosenthal, President & CEO commented, "The additional interest coupled with operatorship for a very modest cash outlay increases the company's leverage to a highly prospective project with significant resource potential of +50mmboe. This project represents one of the larger conventional exploration plays to be drilled in the basin and has a similar structural setting to Occidental Petroleum's Z-11 discovery. The deeper plays in the basin remain grossly underexplored and hence NAMG is excited to be testing one of these impactful exploration opportunities. This project helps balance NAMOG's portfolio, as the company has several smaller lower risk targets that are part of the planned drilling activity."
Project Summary – Tejon Area
The Tejon Main project is located about 20 miles south of Bakersfield, California, in the southernmost part of the San Joaquin Valley. Tejon Main comprises of 2,600 net acres and is positioned between the North Tejon Field which produced 60 million barrels of oil equivalent ("mmboe") and the Tejon Field which produced 40 mmboe. Importantly NAMG is exploring for hydrocarbons in a proven hydrocarbon province and targeting the same productive sands (Veddar and JV) that are currently producing in the North Tejon and Tejon fields.
The area is a highly prospective hydrocarbon province demonstrated by the presence of the Tejon and Tejon North fields in the immediate area. Furthermore, other oil companies are present, actively pursuing field development utilizing vertical and horizontal wells. An extensive infrastructure network and end user markets located nearby, (e.g. Los Angeles refinery market 60 miles south and the Kern Oil Refinery 30 miles north), augurs well for commercializing any discovery..
Tejon Ranch Main Footwall
The project is located on the Tejon platform on the southern margin of the San Joaquin Basin, between two substantial producing oil and gas fields, North Tejon and Tejon (over 100mmboe recoverable). NAMAG has identified 8 prospects targeting multiple reservoirs, namely the Vedder, Olcese, Eocene, and JV Sands. The reservoirs range in depths from 7,500 feet to 13,000 feet and the prospects are targeting gross unrisked potential P50/P10 of 22.8/73.8mmboe.
NAMG is planning a well mid 2014 targeting a footwall trap adjacent to oil production and up dip from oil shows. It is a deep (+10,000 feet) prospect targeting light oil (32-35º API) and the primary objectives are the Veddar and Eocene sands. The well is targeting 15 - 50mmboe gross potential based on NAMG estimates and has geological similarities to the large 175 - 250 mmboe Occidental Petroleum discovery made in 2009, which is also a San Joaquin Basin footwall trap1.
1 1Occidental Petroleum Corporation news release dated July 22, 2009
About North American Oil and Gas Corporation (OTCBB - NAMG)
North American Oil and Gas Corporation ("NAMG") is a publicly listed (OTCBB - NAMG) oil and gas Company. The Company is focused on the prolific San Joaquin Basin, onshore California, with existing foundation assets targeting exploration and exploitation of high impact oil and gas projects located near infrastructure and existing discoveries.
As of June 30, 2013, NAMG owned interests in approximately 8,243 gross acres (4,944 net acres) in the southern San Joaquin Basin: 1) White Wolf 4,823 gross (2,098 net) acres; 2) Tejon Main 2,874 gross (2,600 net) acres; and 3) Tejon Extension 546 gross (346 net) acres.
This press release contains "forward-looking information" that is based on the Company's current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to the Company's plans, outlook, business strategy and exploration and development of the Company's properties. The words "may", "would", "could", "should", "will", "likely", "expect", "anticipate", "intend", "estimate", "plan", "forecast", "project" and "believe" or other similar words and phrases are intended to identify forward-looking information.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: the ability to raise sufficient capital to fund exploration and development; the quantity of and future net revenues from the Company's reserves; oil and natural gas production levels; commodity prices, foreign currency exchange rates and interest rates; capital expenditure programs and other expenditures; supply and demand for oil and natural gas; schedules and timing of certain projects and the Company's strategy for growth; competitive conditions; the Company's future operating and financial results; and treatment under governmental and other regulatory regimes and tax, environmental and other laws.
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SOURCE North American Oil and Gas Corporation