Worthington's I-1 Well On Track to Begin 24 Hour Production
SAN FRANCISCO, Oct. 4, 2012 /PRNewswire/ -- Worthington Energy, Inc. (OTCBB: WGAS) ("Worthington" or the "Company"), an energy company engaged in the acquisition, exploration, development and drilling of oil and natural gas properties, today reports that the Company's I-1 well is on track and moving towards initiating a continuous 24 hour production schedule. Worthington has a 10.35% interest in the I-1 well and a 2% override interest in the entire 1,400 acres of the Mustang Island 818 Lease position, which is located in the shallow waters of Kleberg County, TX in the Gulf of Mexico.
"I am pleased to report that we are currently producing at an 8 hour per day cycle," stated Worthington Energy, Inc. President & CEO, Mr. Tony Mason. "Shut-In tubing pressure (SITP) is 4,150 psi and flowing tubing pressure (FTP) has stabilized at 3,450 psi, up from earlier measurements of 3,250 psi, as we prepare to initiate 24 hour production."
"We have scheduled a "4 Point Test" with the Railroad Commission of Texas (RRC), the state regulatory agency for the oil and gas industry," continued Mr. Mason. The 4 point test measures the "deliverability" of a well as defined by the well's capacity to produce, and is used by the RRC to allocate production quotas. "Once completed, the RRC will determine our "allowable", which is the maximum rate at which we are able to produce."
"We will continue 8 hour per day production as the 20" pipeline to the onshore Six Pigs processing facility pressures up," explained Mr. Mason. "We need to be at least 300 to 400 psi in order to begin 24 hour production, and we are already up to 60 psi. The 20" line has a lot of volume to it and I anticipate that it will take approximately 7 to 10 days to fully charge the line."
"Overall, my view on the progress made is extremely positive," said Mr. Mason. "I am very satisfied with the way that the well is performing, as it has conformed to the pattern that we had anticipated. In addition to gas production, the well is currently producing WTI (West Texas Intermediate) crude with an API (American Petroleum Institute) gravity of 37, which commands a premium over regular WTI with an API gravity of around 39.6." WTI, also known as Texas light sweet, is a grade of crude oil used as a benchmark in oil pricing. Light crude oil receives a higher price than heavy crude oil on commodity markets because it produces a higher percentage of gasoline and diesel fuel when converted into products by an oil refinery.
"I know we are all eager to move to 24 hour production, but we must proceed in a safe manner. As previously reported, we expect to achieve full production levels by late October or early November. Be sure to visit our website, www.wenergyinc.com, for additional updates and information on our progress," concluded Mr. Mason.
Worthington engages in the acquisition, exploration, development and drilling of oil and natural gas properties. Worthington is an energy turnaround company whose strategy is to acquire cash flow producing properties with proved and probable reserves, develop the fields by reworking existing wells and drilling new wells. Worthington was founded in 2004 and is based in San Francisco, CA. More information can be found on Worthington Energy, Inc. by visiting the Company's website at www.wenergyinc.com.
Certain statements in this press release regarding strategic plans, expectations and objectives for future operations or results are "forward-looking statements" as defined by the Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements, including the risks discussed in the Company's annual report on Form 10-K and the Company's other filings with the Securities and Exchange Commission. Factors that could cause differences include, but are not limited to, history of losses; speculative nature of oil and natural gas exploration, particularly in the Mustang Island and Vermillion 179 formations on which the Company is focused; substantial capital requirements and ability to access additional capital; ability to meet the drilling schedule; changes in tax regulations applicable to the oil and natural gas industry; results of acquisitions; relationships with partners and service providers; ability to acquire additional leasehold interests or other oil and natural gas properties; defects in title to the Company's oil and natural gas interests; ability to manage growth in the Company's business; ability to control properties that the Company does not operate; lack of diversification; competition in the oil and natural gas industry; global financial conditions; oil and natural gas realized prices; ability to market and distribute oil and natural gas produced; seasonal weather conditions; government regulation of the oil and natural gas industry, including potential regulations affecting hydraulic fracturing and environmental regulations such as climate change regulations; uninsured or underinsured risks; and material weakness in internal accounting controls. The forward-looking statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not undertake any obligation to update the forward-looking statements as a result of new information, future events or otherwise.
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SOURCE Worthington Energy, Inc.